Understanding 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 communication services sector:

1. Jiayin Gr JFIN - P/E: 6.18
2. KT KT - P/E: 8.78
3. SciPlay SCPL - P/E: 9.63
4. Phoenix New Media FENG - P/E: 0.78
5. AMC Networks AMCX - P/E: 6.91

Jiayin Gr looks to be undervalued. It possesses an EPS of 0.03, which has not changed since last quarter (Q1). Jiayin Gr does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

KT’s earnings per share for Q2 sits at 0.0, whereas in Q1, they were at 0.04. KT does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

SciPlay has reported Q2 earnings per share at 0.27, which has increased by 42.11% compared to Q1, which was 0.19. SciPlay does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Phoenix New Media’s earnings per share for Q2 sits at 0.05, whereas in Q1, they were at -0.1. Phoenix New Media does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

AMC Networks has reported Q2 earnings per share at 2.39, which has increased by 62.59% compared to Q1, which was 1.47. AMC Networks 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.