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 labelled as a value stock.
Below is a list of notable value stocks in the technology sector:
- GSE Systems (NASDAQ:GVP) - P/E: 2.69
- Canaan (NASDAQ:CAN) - P/E: 2.8
- O2Micro Intl (NASDAQ:OIIM) - P/E: 9.67
- Flex (NASDAQ:FLEX) - P/E: 7.34
- ASE Technology Holding Co (NYSE:ASX) - P/E: 6.47
GSE Systems saw an increase in earnings per share from -0.03 in Q2 to $-0.01 now. Canaan saw an increase in earnings per share from 0.41 in Q3 to $1.07 now. O2Micro Intl saw a decrease in earnings per share from 0.12 in Q3 to $0.09 now. This quarter, Flex experienced an increase in earnings per share, which was $0.48 in Q2 and is now $0.5. ASE Technology Holding Co's earnings per share for Q4 sits at $0.5, whereas in Q3, they were at 0.23. The company's most recent dividend yield sits at 2.39%, which has increased by 0.39% from 2.0% 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.
