Market Overview

Overview Of Value Stocks In The Communication Services Sector

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What are 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.

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

  1. AMC Networks (NASDAQ: AMCX) - P/E: 6.78
  2. Cumulus Media (NASDAQ: CMLS) - P/E: 1.49
  3. Tegna (NYSE: TGNA) - P/E: 8.75
  4. SciPlay (NASDAQ: SCPL) - P/E: 9.15
  5. Lee Enterprises (NYSE: LEE) - P/E: 8.7

This quarter, AMC Networks experienced an increase in earnings per share, which was 1.47 in Q1 and is now 2.39. AMC Networks does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Cumulus Media’s earnings per share for Q2 sits at -1.51, whereas in Q1, they were at -0.36. Cumulus Media does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Tegna’s earnings per share for Q2 sits at 0.12, whereas in Q1, they were at 0.43. Its most recent dividend yield is at 2.4%, which has decreased by 0.15% from 2.55% in the previous quarter.

SciPlay saw an increase in earnings per share from 0.19 in Q1 to 0.27 now. SciPlay does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Lee Enterprises reported earnings per share at -0.02, whereas in Q2 earnings per share sat at -0.09. Lee Enterprises 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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