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:
- Socket Mobile (NASDAQ:SCKT) - P/E: 6.35
- GoPro (NASDAQ:GPRO) - P/E: 4.62
- Franklin Wireless (NASDAQ:FKWL) - P/E: 5.55
- Immersion (NASDAQ:IMMR) - P/E: 8.33
- Himax Technologies (NASDAQ:HIMX) - P/E: 6.86
Socket Mobile's earnings per share for Q3 sits at 0.07, whereas in Q2, they were at 0.27. GoPro saw an increase in earnings per share from 0.12 in Q2 to 0.34 now. Franklin Wireless has reported Q4 earnings per share at -0.01, which has decreased by 103.03% compared to Q3, which was 0.33. Immersion has reported Q3 earnings per share at 0.15, which has decreased by 34.78% compared to Q2, which was 0.23. Most recently, Himax Technologies reported earnings per share at 0.8, whereas in Q2 earnings per share sat at 0.62. Its most recent dividend yield is at 2.2%, which has increased by 0.97% from 1.23% 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.
