Market Overview

A Look Into Communication Services Sector Value Stocks

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The Meaning Behind 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 labelled as a value stock.

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

  1. MSG Networks (NYSE:MSGN) - P/E: 4.61
  2. Otelco (NASDAQ:OTEL) - P/E: 5.79
  3. Momo (NASDAQ:MOMO) - P/E: 8.0
  4. Lumen Technologies (NYSE:LUMN) - P/E: 8.85
  5. Turkcell Iletisim (NYSE:TKC) - P/E: 9.6

MSG Networks has reported Q1 earnings per share at 0.61, which has decreased by 37.11% compared to Q4, which was 0.97. MSG Networks does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Otelco's earnings per share for Q3 sits at 0.36, whereas in Q2, they were at 0.42. Otelco does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Momo saw an increase in earnings per share from 0.43 in Q2 to 0.44 now. Momo does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Lumen Technologies reported earnings per share at 0.4, whereas in Q2 earnings per share sat at 0.42. The company's most recent dividend yield sits at 10.06%, which has increased by 1.2% from 8.86% last quarter.

Turkcell Iletisim saw an increase in earnings per share from 0.06 in Q2 to 0.08 now. Its most recent dividend yield is at 2.2%, which has decreased by 0.21% from 2.41% in the previous 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.

 

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