What Defines 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.
Benzinga Insights has compiled a list of value stocks in the communication services sector that may be worth watching:
- Cumulus Media CMLS - P/E: 4.33
- Insignia Systems ISIG - P/E: 1.53
- Thryv Holdings THRY - P/E: 6.59
- Liberty TripAdvisor Hldgs LTRPA - P/E: 1.19
- Outbrain OB - P/E: 4.44
Cumulus Media saw an increase in earnings per share from 0.34 in Q2 to $0.45 now. Insignia Systems has reported Q3 earnings per share at $-0.11, which has increased by 81.97% compared to Q2, which was -0.61. Thryv Holdings saw a decrease in earnings per share from 1.61 in Q2 to $0.37 now. Liberty TripAdvisor Hldgs saw a decrease in earnings per share from 0.87 in Q2 to $-0.39 now. Outbrain has reported Q3 earnings per share at $-0.1, which has increased by 47.37% compared to Q2, which was -0.19. Most recently, the company reported a dividend yield of 4.61%, which has decreased by 1.91% from last quarter's yield of 6.52%.
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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