Market Overview

A Look Into Communication Services Sector Value Stocks

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What are 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. Discovery (NASDAQ: DISCK) - P/E: 9.3
  2. Phoenix New Media (NYSE: FENG) - P/E: 0.75
  3. SciPlay (NASDAQ: SCPL) - P/E: 8.19
  4. AMC Networks (NASDAQ: AMCX) - P/E: 6.11
  5. Turkcell Iletisim (NYSE: TKC) - P/E: 9.67

Discovery saw a decrease in earnings per share from 0.87 in Q1 to 0.77 now. Discovery does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Phoenix New Media reported earnings per share at 0.05, whereas in Q1 earnings per share sat 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.

SciPlay’s earnings per share for Q2 sits at 0.27, whereas in Q1, they were at 0.19. SciPlay does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

AMC Networks’s earnings per share for Q3 sits at 1.32, whereas in Q2, they were at 2.39. AMC Networks does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Turkcell Iletisim reported earnings per share at 0.06, whereas in Q1 earnings per share sat at 0.07. Most recently, the company reported a dividend yield of 2.2%, which has decreased by 0.21% from last quarter’s yield of 2.41%.

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.

 

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