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.
Benzinga Insights has compiled a list of value stocks in the technology sector that may be worth watching:
- Paltalk (NASDAQ:PALT) - P/E: 9.35
- O2Micro Intl (NASDAQ:OIIM) - P/E: 8.87
- Bel Fuse (NASDAQ:BELFB) - P/E: 7.73
- EMCORE (NASDAQ:EMKR) - P/E: 8.17
- LG Display Co (NYSE:LPL) - P/E: 5.42
Most recently, Paltalk reported earnings per share at -0.05, whereas in Q2 earnings per share sat at 0.12. This quarter, O2Micro Intl experienced an increase in earnings per share, which was 0.1 in Q2 and is now 0.12. This quarter, Bel Fuse experienced a decrease in earnings per share, which was 0.68 in Q2 and is now 0.51. Its most recent dividend yield is at 1.94%, which has decreased by 0.2% from 2.14% in the previous quarter.
EMCORE's earnings per share for Q4 sits at 0.17, whereas in Q3, they were at 0.2. Most recently, LG Display Co reported earnings per share at 0.56, whereas in Q2 earnings per share sat at 0.53.
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.
