Market Overview

5 Value Stocks To Watch In The Communication Services Sector

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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.

The following stocks are considered to be notable value stocks in the communication services sector:

  1. Gray Television (NYSE: GTN) - P/E: 7.7
  2. Nexstar Media Group (NASDAQ: NXST) - P/E: 9.02
  3. Phoenix New Media (NYSE: FENG) - P/E: 1.24
  4. Otelco (NASDAQ: OTEL) - P/E: 5.79
  5. Turkcell Iletisim (NYSE: TKC) - P/E: 9.55

Most recently, Gray Television reported earnings per share at 1.14, whereas in Q2 earnings per share sat 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, Nexstar Media Group experienced an increase in earnings per share, which was 2.02 in Q2 and is now 4.08. The company’s most recent dividend yield sits at 2.56%, which has decreased by 0.08% from 2.64% last quarter.

Most recently, Phoenix New Media reported earnings per share at 0.0, whereas in Q2 earnings per share sat at 0.05. Phoenix New Media does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Otelco reported earnings per share at 0.36, whereas in Q2 earnings per share sat at 0.42. Otelco does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Turkcell Iletisim’s earnings per share for Q3 sits at 0.08, whereas in Q2, they were at 0.06. 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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