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.
Benzinga Insights has compiled a list of value stocks in the communication services sector that may be worth watching:
- DISH Network DISH - P/E: 6.21
- Jiayin Gr JFIN - P/E: 1.82
- Lumen Technologies LUMN - P/E: 5.79
- Altice USA ATUS - P/E: 6.51
- AdTheorent Holding ADTH - P/E: 6.27
Most recently, DISH Network reported earnings per share at $0.82, whereas in Q1 earnings per share sat at $0.68. Jiayin Gr's earnings per share for Q1 sits at $0.44, whereas in Q4, they were at 0.36. Most recently, Lumen Technologies reported earnings per share at $0.35, whereas in Q1 earnings per share sat at $0.63. Most recently, the company reported a dividend yield of 8.77%, which has decreased by 1.63% from last quarter's yield of 10.4%.
Altice USA saw a decrease in earnings per share from 0.43 in Q1 to $0.23 now. 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%.
AdTheorent Holding saw an increase in earnings per share from -0.03 in Q1 to $0.62 now.
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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