Understanding Value Stocks
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:
- Zedge ZDGE - P/E: 4.63
- AdTheorent Holding ADTH - P/E: 4.78
- Altice USA ATUS - P/E: 3.22
- Sinclair Broadcast Group SBGI - P/E: 0.52
- VEON VEON - P/E: 1.68
Zedge saw a decrease in earnings per share from 0.16 in Q2 to $0.05 now. AdTheorent Holding's earnings per share for Q2 sits at $0.62, whereas in Q1, they were at -0.03. This quarter, Altice USA experienced a decrease in earnings per share, which was $0.43 in Q1 and is now $0.23. Its most recent dividend yield is at 10.8%, which has increased by 10.8% from 0.0% in the previous quarter.
Sinclair Broadcast Group has reported Q2 earnings per share at $-0.03, which has decreased by 108.11% compared to Q1, which was 0.37. Most recently, the company reported a dividend yield of 4.55%, which has increased by 0.27% from last quarter's yield of 4.28%.
Most recently, VEON reported earnings per share at $0.06, whereas in Q1 earnings per share sat at $-0.09. Most recently, the company reported a dividend yield of 11.03%, which has increased by 2.03% from last quarter's yield of 9.0%.
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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