A Look Into Technology Sector Value Stocks

A Look Into Technology Sector Value Stocks

What Defines 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.

Below is a list of notable value stocks in the technology sector:

  1. Sigmatron International SGMA - P/E: 3.45
  2. GoPro GPRO - P/E: 2.29
  3. O2Micro Intl OIIM - P/E: 8.51
  4. TSR TSRI - P/E: 2.35
  5. Taitron Components TAIT - P/E: 5.76

Most recently, Sigmatron International reported earnings per share at $0.75, whereas in Q2 earnings per share sat at $0.69. GoPro saw a decrease in earnings per share from 0.41 in Q4 to $0.09 now. O2Micro Intl saw a decrease in earnings per share from 0.09 in Q4 to $0.03 now. This quarter, TSR experienced a decrease in earnings per share, which was $0.12 in Q2 and is now $-0.02. Most recently, Taitron Components reported earnings per share at $0.34, whereas in Q4 earnings per share sat at $0.07.

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.

Posted In: BZI-VSNews