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:
- Bel Fuse BELFB - P/E: 8.62
- Hamilton Beach Brands HBB - P/E: 10.0
- QIWI QIWI - P/E: 4.57
- WidePoint WYY - P/E: 5.71
- Cheetah Mobile CMCM - P/E: 3.29
Bel Fuse has reported Q1 earnings per share at -0.23, which has decreased by 215.0% compared to Q4, which was 0.2. Its most recent dividend yield is at 1.56%, which has decreased by 0.11% from 1.67% in the previous quarter.
Hamilton Beach Brands has reported Q1 earnings per share at 0.21, which has decreased by 85.0% compared to Q4, which was 1.4. Most recently, the company reported a dividend yield of 1.71%, which has decreased by 0.42% from last quarter's yield of 2.13%.
QIWI has reported Q1 earnings per share at 0.44, which has decreased by 20.0% compared to Q4, which was 0.55. Its most recent dividend yield is at 8.01%, which has decreased by 3.51% from 11.52% in the previous quarter.
Most recently, WidePoint reported earnings per share at 0.06, whereas in Q4 earnings per share sat at 0.96. WidePoint does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Cheetah Mobile saw an increase in earnings per share from 0.07 in Q4 to 0.08 now. Cheetah Mobile 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.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.