What are 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.
Below is a list of notable value stocks in the communication services sector:
- Reading Intl RDI - P/E: 7.93
- Telefonica TEF - P/E: 2.2
- Hello Gr MOMO - P/E: 8.93
- Lee Enterprises LEE - P/E: 6.52
- Genius Brands Intl GNUS - P/E: 0.1
This quarter, Reading Intl experienced an increase in earnings per share, which was -0.53 in Q2 and is now -0.46. Reading Intl does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Telefonica saw a decrease in earnings per share from 0.11 in Q2 to 0.09 now. Its most recent dividend yield is at 9.93%, which has decreased by 1.33% from 11.26% in the previous quarter.
Most recently, Hello Gr reported earnings per share at 0.39, whereas in Q1 earnings per share sat at 0.44. Hello Gr does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Lee Enterprises's earnings per share for Q3 sits at 0.55, whereas in Q2, they were at -0.19. Lee Enterprises does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Most recently, Genius Brands Intl reported earnings per share at -0.03, whereas in Q2 earnings per share sat at -0.02. Genius Brands Intl 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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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