A Look Into Technology Sector Value Stocks

What is a Value Stock?

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.

Below is a list of notable value stocks in the technology sector:

1. Bel Fuse (NASDAQ:BELFA) - P/E: 8.45
2. Sanmina (NASDAQ:SANM) - P/E: 9.79
3. Aviat Networks (NASDAQ:AVNW) - P/E: 4.14
4. Turtle Beach (NASDAQ:HEAR) - P/E: 9.32
5. Network-1 Technologies (AMEX:NTIP) - P/E: 8.08

Bel Fuse has reported Q2 earnings per share at 0.64, which has increased by 378.26% compared to Q1, which was -0.23. Most recently, the company reported a dividend yield of 1.61%, which has increased by 0.27% from last quarter's yield of 1.34%.

This quarter, Sanmina experienced a decrease in earnings per share, which was 1.01 in Q2 and is now 0.99. Sanmina does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Aviat Networks's earnings per share for Q3 sits at 0.49, whereas in Q2, they were at 1.48. Aviat Networks does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Turtle Beach's earnings per share for Q2 sits at 0.14, whereas in Q1, they were at 0.52. Turtle Beach does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Network-1 Technologies saw an increase in earnings per share from -0.06 in Q4 to 0.38 now. Its most recent dividend yield is at 2.75%, which has decreased by 1.77% from 4.52% in the previous quarter.

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.