5 Value Stocks To Watch In The Technology Sector


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.

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

  1. Amtech Systems ASYS - P/E: 9.04
  2. Daqo New Energy DQ - P/E: 2.17
  3. Canaan CAN - P/E: 1.59
  4. Micron Technology MU - P/E: 7.26
  5. LGL Group LGL - P/E: 2.08

Amtech Systems saw a decrease in earnings per share from 0.14 in Q2 to $-0.16 now. Daqo New Energy saw an increase in earnings per share from 6.99 in Q1 to $8.18 now. Canaan's earnings per share for Q2 sits at $0.6, whereas in Q1, they were at 0.5. This quarter, Micron Technology experienced a decrease in earnings per share, which was $2.59 in Q3 and is now $1.45. Most recently, the company reported a dividend yield of 0.9%, which has increased by 0.08% from last quarter's yield of 0.82%.

Most recently, LGL Group reported earnings per share at $-0.34, whereas in Q1 earnings per share sat at $0.03.

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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