A Look Into Technology Sector Value Stocks

The Meaning Behind 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.

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

  1. WidePoint WYY - P/E: 4.85
  2. Quhuo QH - P/E: 6.5
  3. China Index Holdings CIH - P/E: 3.01
  4. Himax Technologies HIMX - P/E: 9.38
  5. Agora API - P/E: 1.52

WidePoint's earnings per share for Q2 sits at -0.02, whereas in Q1, they were at 0.06. WidePoint does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Quhuo saw an increase in earnings per share from -0.28 in Q1 to 0.04 now. Quhuo does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

China Index Holdings saw an increase in earnings per share from 0.12 in Q3 to 0.15 now. China Index Holdings does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Himax Technologies saw an increase in earnings per share from 0.38 in Q1 to 0.62 now. Its most recent dividend yield is at 2.2%, which has increased by 0.97% from 1.23% in the previous quarter.

Agora saw a decrease in earnings per share from -0.04 in Q1 to -0.05 now. Agora 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.

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