A Look Into Technology Sector Value Stocks

Understanding Value Stocks

A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company's future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labelled as a value stock.

Benzinga Insights has compiled a list of value stocks in the technology sector that may be worth watching:

1. IBEX IBEX - P/E: 9.4
2. Key Tronic KTCC - P/E: 8.89
3. Canadian Solar CSIQ - P/E: 3.59
4. ScanSource SCSC - P/E: 8.86
5. Tingo Group TIO - P/E: 2.28

IBEX's earnings per share for Q4 sits at $0.33, whereas in Q3, they were at 0.59. Key Tronic saw a decrease in earnings per share from 0.18 in Q3 to $0.1 now. Most recently, Canadian Solar reported earnings per share at $2.39, whereas in Q1 earnings per share sat at $1.19. This quarter, ScanSource experienced a decrease in earnings per share, which was $0.96 in Q3 and is now $0.76. Most recently, Tingo Group reported earnings per share at $0.18, whereas in Q1 earnings per share sat at $0.33.

The Significance: A value stock may need some time to rebound from its undervalued position. The risk of investing in a value stock is that this emergence may never materialize.