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.

Benzinga Insights has compiled a list of value stocks in the technology sector that may be worth watching:

1. China Index Holdings CIH - P/E: 3.38
2. Ebix EBIX - P/E: 6.94
3. MIND C.T.I. MNDO - P/E: 9.37
4. Inpixon INPX - P/E: 0.04
5. JinkoSolar Holding Co JKS - P/E: 9.15

China Index Holdings looks to be undervalued. It possesses an EPS of 0.1, which has not changed since last quarter (Q1). China Index Holdings does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Ebix’s earnings per share for Q2 sits at 0.88, whereas in Q1, they were at 0.96. Most recently, the company reported a dividend yield of 1.2%, which has decreased by 0.23% from last quarter’s yield of 1.43%.

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

Most recently, Inpixon reported earnings per share at -0.21, whereas in Q1 earnings per share sat at -0.92. Inpixon 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 Q2 sits at 1.2, whereas in Q1, they were at 0.65. JinkoSolar Holding Co 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.