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.
Below is a list of notable value stocks in the communication services sector:
- HUYA HUYA - P/E: 7.07
- Genius Brands Intl GNUS - P/E: 1.78
- Boston Omaha BOC - P/E: 8.96
- Lumen Technologies LUMN - P/E: 5.28
- Altice USA ATUS - P/E: 5.41
Most recently, HUYA reported earnings per share at $0.12, whereas in Q2 earnings per share sat at $0.16. Most recently, Genius Brands Intl reported earnings per share at $-0.03, whereas in Q2 earnings per share sat at $-0.02. Boston Omaha saw a decrease in earnings per share from 0.29 in Q2 to $-0.89 now. Lumen Technologies saw an increase in earnings per share from 0.49 in Q3 to $0.51 now. Most recently, the company reported a dividend yield of 10.4%, which has increased by 3.13% from last quarter's yield of 7.27%.
Altice USA has reported Q4 earnings per share at $0.56, which has decreased by 3.45% compared to Q3, which was 0.58. Most recently, the company reported a dividend yield of 10.8%, which has increased by 10.8% from last quarter's yield of 0.0%.
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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