What are 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.
The following stocks are considered to be notable value stocks in the technology sector:
- Vontier VNT - P/E: 5.45
- Yalla Group YALA - P/E: 6.79
- China Index Holdings CIH - P/E: 2.68
- 3D Sys DDD - P/E: 4.63
- Arrow Electronics ARW - P/E: 4.72
Vontier has reported Q2 earnings per share at $0.72, which has increased by 2.86% compared to Q1, which was 0.7. Most recently, the company reported a dividend yield of 0.41%, which has increased by 0.05% from last quarter's yield of 0.36%.
Yalla Group's earnings per share for Q2 sits at $0.16, whereas in Q1, they were at 0.15. China Index Holdings has reported Q2 earnings per share at $0.03, which has decreased by 57.14% compared to Q1, which was 0.07. This quarter, 3D Sys experienced a decrease in earnings per share, which was $-0.06 in Q1 and is now $-0.07. Arrow Electronics has reported Q2 earnings per share at $5.78, which has increased by 6.45% compared to Q1, which was 5.43.
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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