5 Value Stocks To Watch In The Technology Sector

What Defines a Value Stock?

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.

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

1. WidePoint WYY - P/E: 5.96
2. Bel Fuse BELFA - P/E: 8.7
3. Bit Digital BTBT - P/E: 8.56
4. SunPower SPWR - P/E: 9.38
5. Aviat Networks AVNW - P/E: 3.83

WidePoint saw a decrease in earnings per share from 0.96 in Q4 to 0.06 now. WidePoint does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Bel Fuse saw a decrease in earnings per share from 0.18 in Q4 to -0.23 now. The company's most recent dividend yield sits at 1.34%, which has decreased by 0.1% from 1.44% last quarter.

Most recently, Bit Digital reported earnings per share at 0.74, whereas in Q4 earnings per share sat at 0.02. Bit Digital does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

SunPower saw a decrease in earnings per share from 0.14 in Q4 to 0.05 now. SunPower does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Aviat Networks reported earnings per share at 0.49, whereas in Q2 earnings per share sat at 1.48. Aviat Networks does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

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.