What is a Value Stock?

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.

Below is a list of notable value stocks in the technology sector:

1. MIND C.T.I. MNDO - P/E: 9.17
2. JinkoSolar Holding Co JKS - P/E: 7.3
3. O2Micro Intl OIIM - P/E: 0.29
4. ChipMOS TECHNOLOGIES IMOS - P/E: 7.07
5. Image Sensing Systems ISNS - P/E: 3.15

MIND C.T.I. saw an increase in earnings per share from 0.06 in Q1 to 0.07 now. The company’s most recent dividend yield sits at 11.0%, which has decreased by 0.36% from 11.36% last quarter.

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.

O2Micro Intl’s earnings per share for Q2 sits at 0.03, whereas in Q1, they were at -0.06. O2Micro Intl does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, ChipMOS TECHNOLOGIES experienced a decrease in earnings per share, which was 0.64 in Q1 and is now 0.51. The company’s most recent dividend yield sits at 5.47%, which has increased by 2.47% from 3.0% last quarter.

Image Sensing Systems’s earnings per share for Q2 sits at 0.03, whereas in Q1, they were at -0.02. Image Sensing Systems 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.