Understanding 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:
- Franklin Wireless FKWL - P/E: 3.59
- ChipMOS TECHNOLOGIES IMOS - P/E: 9.97
- Bel Fuse BELFA - P/E: 7.68
- WidePoint WYY - P/E: 4.61
- BM Technologies BMTX - P/E: 4.1
This quarter, Franklin Wireless experienced a decrease in earnings per share, which was 0.33 in Q3 and is now -0.01. Franklin Wireless does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
ChipMOS TECHNOLOGIES has reported Q2 earnings per share at 1.26, which has increased by 35.48% compared to Q1, which was 0.93. The company's most recent dividend yield sits at 4.2%, which has decreased by 1.27% from 5.47% last quarter.
Bel Fuse saw an increase in earnings per share from -0.23 in Q1 to 0.64 now. Its most recent dividend yield is at 1.61%, which has increased by 0.27% from 1.34% in the previous quarter.
WidePoint saw a decrease in earnings per share from 0.06 in Q1 to -0.02 now. WidePoint does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
BM Technologies saw a decrease in earnings per share from 0.25 in Q1 to 0.1 now. BM Technologies 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.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.