The Meaning Behind 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 communication services sector:

1. SciPlay SCPL - P/E: 9.26
2. Criteo CRTO - P/E: 9.77
3. Momo MOMO - P/E: 7.28
4. Phoenix New Media FENG - P/E: 0.77
5. MSG Networks MSGN - P/E: 3.15

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.

This quarter, Criteo experienced a decrease in earnings per share, which was 0.52 in Q1 and is now 0.27. Criteo does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Momo’s earnings per share for Q2 sits at 0.43, whereas in Q1, they were at 0.47. Momo does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Phoenix New Media saw an increase in earnings per share from -0.1 in Q1 to 0.05 now. Phoenix New Media does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

MSG Networks’s earnings per share for Q4 sits at 0.97, whereas in Q3, they were at 0.77. MSG 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.