Market Overview

Overview Of Value Stocks In The Technology Sector

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The Meaning Behind 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. HP (NYSE: HPQ) - P/E: 8.58
  2. China Index Holdings (NASDAQ: CIH) - P/E: 5.04
  3. VirnetX Hldg (NYSE: VHC) - P/E: 1.25
  4. JinkoSolar Holding Co (NYSE: JKS) - P/E: 6.35
  5. Canadian Solar (NASDAQ: CSIQ) - P/E: 4.59

Most recently, HP reported earnings per share at 0.51, whereas in Q1 earnings per share sat at 0.65. Its most recent dividend yield is at 4.14%, which has decreased by 0.72% from 4.86% in the previous quarter.

This quarter, China Index Holdings experienced a decrease in earnings per share, which was 0.12 in Q4 and is now 0.1. China Index Holdings does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

VirnetX Hldg looks to be undervalued. It possesses an EPS of -0.07, which has not changed since last quarter (Q3). VirnetX Hldg does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

JinkoSolar Holding Co’s earnings per share for Q1 sits at 0.65, whereas in Q4, they were at 1.4. JinkoSolar Holding Co does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Canadian Solar’s earnings per share for Q1 sits at 1.84, whereas in Q4, they were at 1.04. Canadian Solar 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.

 

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