Understanding 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:

1. Lee Enterprises LEE - P/E: 8.02
2. Jiayin Gr JFIN - P/E: 4.46
3. Criteo CRTO - P/E: 9.83
4. AMC Networks AMCX - P/E: 4.6
5. Discovery DISCA - P/E: 7.29

Lee Enterprises saw a decrease in earnings per share from 0.07 in Q1 to -0.09 now. Lee Enterprises does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Jiayin Gr reported earnings per share at 0.03, whereas in Q4 earnings per share sat at 0.08. Jiayin Gr does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Criteo reported earnings per share at 0.52, whereas in Q4 earnings per share sat at 1.08. Criteo does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

AMC Networks saw a decrease in earnings per share from 1.69 in Q4 to 1.47 now. AMC Networks does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Discovery has reported Q1 earnings per share at 0.87, which has decreased by 11.22% compared to Q4, which was 0.98. Discovery does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

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.