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 communication services sector:

1. Phoenix New Media FENG - P/E: 1.2
2. SciPlay SCPL - P/E: 8.14
3. Jiayin Gr JFIN - P/E: 6.5
4. Nexstar Media Group NXST - P/E: 8.83
5. Telephone and Data TDS - P/E: 9.77

This quarter, Phoenix New Media experienced a decrease in earnings per share, which was 0.05 in Q2 and is now 0.0. Phoenix New Media does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

SciPlay saw a decrease in earnings per share from 0.27 in Q2 to 0.23 now. SciPlay does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Jiayin Gr has reported Q3 earnings per share at 0.06, which has increased by 100.0% compared to Q2, which was 0.03. Jiayin Gr does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Nexstar Media Group reported earnings per share at 4.08, whereas in Q2 earnings per share sat at 2.02. Its most recent dividend yield is at 2.56%, which has decreased by 0.08% from 2.64% in the previous quarter.

Telephone and Data saw an increase in earnings per share from 0.56 in Q2 to 0.66 now. The company’s most recent dividend yield sits at 3.51%, which has increased by 0.57% from 2.94% last quarter.

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.