Overview Of Value Stocks In The Technology Sector

What are Value Stocks?

A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued.

The following stocks are considered to be notable value stocks in the technology sector:

1. Marketwise (NASDAQ:MKTW) - P/E: 2.3
2. MIND C.T.I. (NASDAQ:MNDO) - P/E: 7.42
3. Avnet (NASDAQ:AVT) - P/E: 4.63
4. Koss (NASDAQ:KOSS) - P/E: 4.27
5. Yalla Group (NYSE:YALA) - P/E: 8.0

Marketwise's earnings per share for Q4 sits at $0.01, whereas in Q3, they were at -0.17. MIND C.T.I. has been featured as a value stock. MIND C.T.I.'s Q4 EPS sits at $0.06, which has not changed since last quarter (Q3). Most recently, the company reported a dividend yield of 10.32%, which has increased by 1.62% from last quarter's yield of 8.7%.

Avnet has been featured as a value stock. Avnet's Q2 EPS sits at $2.0, which has not changed since last quarter (Q1). Its most recent dividend yield is at 2.5%, which has decreased by 0.12% from 2.62% in the previous quarter.

This quarter, Koss experienced a decrease in earnings per share, which was $1.01 in Q1 and is now $-0.12. Its most recent dividend yield is at 4.25%, which has decreased by 0.35% from 4.6% in the previous quarter.

Yalla Group has reported Q4 earnings per share at $0.12, which has decreased by 29.41% compared to Q3, which was 0.17.

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.