What are 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.
The following stocks are considered to be notable value stocks in the communication services sector:
- Lendway LDWY - P/E: 0.91
- Cogent Comms Hldgs CCOI - P/E: 3.3
- Hello Gr MOMO - P/E: 4.94
- National CineMedia NCMI - P/E: 0.19
- Telecom Argentina TEO - P/E: 9.11
This quarter, Lendway experienced an increase in earnings per share, which was $-0.02 in Q2 and is now $0.63. Cogent Comms Hldgs saw a decrease in earnings per share from -0.67 in Q2 to $-1.2 now. The company's most recent dividend yield sits at 5.88%, which has decreased by 0.37% from 6.25% last quarter.
Hello Gr saw a decrease in earnings per share from 0.43 in Q2 to $0.42 now. This quarter, National CineMedia experienced an increase in earnings per share, which was $-0.7 in Q2 and is now $-0.34. Its most recent dividend yield is at 6.94%, which has increased by 1.17% from 5.77% in the previous quarter.
Telecom Argentina saw an increase in earnings per share from 0.03 in Q2 to $0.23 now.
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.
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