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.
The following stocks are considered to be notable value stocks in the technology sector:
- WidePoint WYY - P/E: 3.93
- Daqo New Energy DQ - P/E: 4.3
- Western Digital WDC - P/E: 8.29
- Kulicke & Soffa Indus KLIC - P/E: 7.13
- ASE Technology Holding Co ASX - P/E: 6.97
WidePoint's earnings per share for Q3 sits at $0.06, whereas in Q2, they were at -0.02. Daqo New Energy has reported Q3 earnings per share at $3.84, which has increased by 25.49% compared to Q2, which was 3.06. Western Digital has reported Q2 earnings per share at $2.3, which has decreased by 7.63% compared to Q1, which was 2.49. The company's most recent dividend yield sits at 2.84%, which has decreased by 1.08% from 3.92% last quarter.
Kulicke & Soffa Indus's earnings per share for Q1 sits at $2.19, whereas in Q4, they were at 2.17. Its most recent dividend yield is at 1.38%, which has increased by 0.54% from 0.84% in the previous quarter.
Most recently, ASE Technology Holding Co reported earnings per share at $0.5, whereas in Q3 earnings per share sat at $0.23. The company's most recent dividend yield sits at 2.39%, which has increased by 0.39% from 2.0% last 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.
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