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.
Benzinga Insights has compiled a list of value stocks in the communication services sector that may be worth watching:
- Genius Brands Intl GNUS - P/E: 1.68
- DISH Network DISH - P/E: 7.96
- Daily Journal DJCO - P/E: 7.27
- Altice USA ATUS - P/E: 5.21
- Reading Intl RDI - P/E: 6.84
Genius Brands Intl saw a decrease in earnings per share from -0.02 in Q2 to $-0.03 now. This quarter, DISH Network experienced a decrease in earnings per share, which was $0.88 in Q3 and is now $0.87. Daily Journal saw an increase in earnings per share from -1.03 in Q4 to $4.98 now. Altice USA saw a decrease in earnings per share from 0.58 in Q3 to $0.56 now. The company's most recent dividend yield sits at 10.8%, which has increased by 10.8% from 0.0% last quarter.
Most recently, Reading Intl reported earnings per share at $-0.46, whereas in Q2 earnings per share sat at $-0.53.
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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