Understanding 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. Ebix EBIX - P/E: 7.36
2. Bridgeline Digital BLIN - P/E: 0.72
3. Hamilton Beach Brands HBB - P/E: 9.81
4. O2Micro Intl OIIM - P/E: 0.46
5. Inpixon INPX - P/E: 0.04

Ebix saw a decrease in earnings per share from 0.96 in Q1 to 0.88 now. Its most recent dividend yield is at 1.2%, which has decreased by 0.23% from 1.43% in the previous quarter.

Bridgeline Digital saw a decrease in earnings per share from 0.33 in Q2 to -0.37 now. Bridgeline Digital does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Hamilton Beach Brands experienced an increase in earnings per share, which was -0.1 in Q1 and is now 0.59. Its most recent dividend yield is at 2.06%, which has decreased by 1.41% from 3.47% in the previous quarter.

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, Inpixon experienced an increase in earnings per share, which was -0.92 in Q1 and is now -0.21. Inpixon 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.