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.

Benzinga Insights has compiled a list of value stocks in the technology sector that may be worth watching:

Avnet has reported Q4 earnings per share at $2.06, which has increased by 3.0% compared to Q3, which was 2.0. Its most recent dividend yield is at 2.51%, which has decreased by 0.22% from 2.73% in the previous quarter.

United Microelectronics saw a decrease in earnings per share from 0.21 in Q1 to $0.2 now. Most recently, the company reported a dividend yield of 2.28%, which has decreased by 3.06% from last quarter's yield of 5.34%.

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.