Market Overview

Overview Of Value Stocks In The Communication Services Sector

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What are 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.

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

  1. Gray Television (NYSE: GTN) - P/E: 6.35
  2. Otelco (NASDAQ: OTEL) - P/E: 5.78
  3. KT (NYSE: KT) - P/E: 9.18
  4. Discovery (NASDAQ: DISCK) - P/E: 9.12
  5. Consolidated Comms Hldgs (NASDAQ: CNSL) - P/E: 9.29

Gray Television’s earnings per share for Q3 sits at 1.14, whereas in Q2, they were at -0.02. Gray Television does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Otelco experienced a decrease in earnings per share, which was 0.42 in Q2 and is now 0.36. Otelco does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, KT reported earnings per share at 0.0, whereas in Q1 earnings per share sat at 0.04. KT does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Discovery has reported Q3 earnings per share at 0.81, which has increased by 5.19% compared to Q2, which was 0.77. Discovery does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Consolidated Comms Hldgs saw an increase in earnings per share from 0.21 in Q2 to 0.23 now. Most recently, the company reported a dividend yield of 14.87%, which has increased by 2.05% from last quarter’s yield of 12.82%.

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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