Overview Of Value Stocks In The Communication Services Sector

The Meaning Behind 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.

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

1. Consolidated Comms Hldgs CNSL - P/E: 9.35
2. Nexstar Media Group NXST - P/E: 8.58
3. SciPlay SCPL - P/E: 8.25
4. Jiayin Gr JFIN - P/E: 6.39
5. Lumen Technologies LUMN - P/E: 8.54

This quarter, Consolidated Comms Hldgs experienced an increase in earnings per share, which was 0.21 in Q2 and is now 0.23. 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%.

Most recently, Nexstar Media Group reported earnings per share at 4.08, whereas in Q2 earnings per share sat at 2.02. The company's most recent dividend yield sits at 2.56%, which has decreased by 0.08% from 2.64% last quarter.

SciPlay's earnings per share for Q3 sits at 0.23, whereas in Q2, they were at 0.27. SciPlay does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Jiayin Gr experienced an increase in earnings per share, which was 0.03 in Q2 and is now 0.06. Jiayin Gr does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Lumen Technologies experienced a decrease in earnings per share, which was 0.42 in Q2 and is now 0.4. The company's most recent dividend yield sits at 10.06%, which has increased by 1.2% from 8.86% 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.