What Defines a Value Stock?
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.
Below is a list of notable value stocks in the communication services sector:
- Tegna (NYSE:TGNA) - P/E: 7.84
- DoubleDown Interactive (NASDAQ:DDI) - P/E: 8.84
- AT&T (NYSE:T) - P/E: 8.74
- Nexstar Media Group (NASDAQ:NXST) - P/E: 8.64
- AMC Networks (NASDAQ:AMCX) - P/E: 5.91
Tegna saw an increase in earnings per share from 0.5 in Q2 to $0.55 now. The company's most recent dividend yield sits at 1.88%, which has decreased by 0.31% from 2.19% last quarter.
This quarter, DoubleDown Interactive experienced a decrease in earnings per share, which was $0.5 in Q3 and is now $0.35. AT&T saw a decrease in earnings per share from 0.87 in Q3 to $0.78 now. The company's most recent dividend yield sits at 9.38%, which has increased by 1.68% from 7.7% last quarter.
Nexstar Media Group has reported Q3 earnings per share at $3.9, which has decreased by 13.53% compared to Q2, which was 4.51. The company's most recent dividend yield sits at 2.33%, which has increased by 0.4% from 1.93% last quarter.
Most recently, AMC Networks reported earnings per share at $2.68, whereas in Q2 earnings per share sat at $3.45.
These 5 value stocks were selected by Benzinga Insights based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.
