Overview Of Value Stocks In The Technology Sector

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.

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

  1. United Microelectronics UMC - P/E: 7.5
  2. Immersion IMMR - P/E: 9.09
  3. EchoStar SATS - P/E: 8.37
  4. Kulicke & Soffa Indus KLIC - P/E: 9.23
  5. Cepton CPTN - P/E: 6.82

This quarter, United Microelectronics experienced a decrease in earnings per share, which was $0.34 in Q3 and is now $0.25. The company's most recent dividend yield sits at 2.28%, which has decreased by 3.06% from 5.34% last quarter.

Immersion saw an increase in earnings per share from 0.28 in Q3 to $0.45 now. The company's most recent dividend yield sits at 1.79%, which has decreased by 0.39% from 2.18% last quarter.

EchoStar's earnings per share for Q4 sits at $0.59, whereas in Q3, they were at 0.27. Kulicke & Soffa Indus has reported Q1 earnings per share at $0.37, which has decreased by 68.91% compared to Q4, which was 1.19. The company's most recent dividend yield sits at 1.4%, which has decreased by 0.19% from 1.59% last quarter.

Most recently, Cepton reported earnings per share at $-0.09, whereas in Q3 earnings per share sat at $-0.08.

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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