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 labeled as a value stock.

The following stocks are considered to be notable value stocks in the technology sector:

1. HP HPQ - P/E: 8.71
2. JinkoSolar Holding Co JKS - P/E: 6.64
3. Intel INTC - P/E: 8.91
4. China Index Holdings CIH - P/E: 4.8
5. Sigmatron International SGMA - P/E: 7.16

This quarter, HP experienced a decrease in earnings per share, which was 0.65 in Q1 and is now 0.51. Most recently, the company reported a dividend yield of 4.14%, which has decreased by 0.72% from last quarter’s yield of 4.86%.

This quarter, JinkoSolar Holding Co experienced a decrease in earnings per share, which was 1.4 in Q4 and is now 0.65. JinkoSolar Holding Co does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Intel has reported Q2 earnings per share at 1.23, which has decreased by 15.17% compared to Q1, which was 1.45. The company’s most recent dividend yield sits at 2.24%, which has decreased by 0.32% from 2.56% last quarter.

China Index Holdings’s earnings per share for Q1 sits at 0.1, whereas in Q4, they were at 0.12. China Index Holdings does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Sigmatron International reported earnings per share at -0.05, whereas in Q2 earnings per share sat at 0.15. Sigmatron International 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.