What is a Value Stock?
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.
The following stocks are considered to be notable value stocks in the communication services sector:
- Educational Development EDUC - P/E: 6.3
- Mobile TeleSystems MBT - P/E: 7.45
- Genius Brands Intl GNUS - P/E: 1.77
- Lee Enterprises LEE - P/E: 9.16
- Scienjoy Holding SJ - P/E: 8.22
Most recently, Educational Development reported earnings per share at 0.31, whereas in Q2 earnings per share sat at 0.23. Its most recent dividend yield is at 4.18%, which has increased by 0.18% from 4.0% in the previous quarter.
Mobile TeleSystems has been featured as a value stock. Mobile TeleSystems's Q3 EPS sits at 0.27, which has not changed since last quarter (Q2). The company's most recent dividend yield sits at 4.86%, which has decreased by 10.69% from 15.55% last quarter.
Genius Brands Intl's earnings per share for Q3 sits at -0.03, whereas in Q2, they were at -0.02. Most recently, Lee Enterprises reported earnings per share at 0.75, whereas in Q3 earnings per share sat at 0.55. Scienjoy Holding has reported Q3 earnings per share at 0.27, which has decreased by 42.55% compared to Q2, which was 0.47.
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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