What are Value Stocks?
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.
The following stocks are considered to be notable value stocks in the communication services sector:
- DISH Network DISH - P/E: 5.2
- AdTheorent Holding ADTH - P/E: 3.26
- Liberty Broadband LBRDK - P/E: 9.53
- Grupo Televisa TV - P/E: 5.48
- Verizon Communications VZ - P/E: 9.17
DISH Network's earnings per share for Q3 sits at $0.65, whereas in Q2, they were at 0.82. Most recently, AdTheorent Holding reported earnings per share at $0.06, whereas in Q2 earnings per share sat at $0.62. Liberty Broadband has reported Q3 earnings per share at $2.05, which has increased by 3.02% compared to Q2, which was 1.99. This quarter, Grupo Televisa experienced a decrease in earnings per share, which was $0.26 in Q2 and is now $0.03. The company's most recent dividend yield sits at 0.32%, which has increased by 0.01% from 0.31% last quarter.
Most recently, Verizon Communications reported earnings per share at $1.32, whereas in Q2 earnings per share sat at $1.31. Its most recent dividend yield is at 6.7%, which has increased by 0.38% from 6.32% in the previous quarter.
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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