What is a Value Stock?

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:

1. Canadian Solar (NASDAQ:CSIQ) - P/E: 4.23
2. BOS Better Online Solns (NASDAQ:BOSC) - P/E: 7.72
3. United Microelectronics (NYSE:UMC) - P/E: 8.66
4. Daktronics (NASDAQ:DAKT) - P/E: 8.4
5. Tower Semiconductor (NASDAQ:TSEM) - P/E: 7.21

Most recently, Canadian Solar reported earnings per share at $0.32, whereas in Q2 earnings per share sat at $2.39. Most recently, BOS Better Online Solns reported earnings per share at $0.05, whereas in Q2 earnings per share sat at $0.11. United Microelectronics's earnings per share for Q4 sits at $0.17, whereas in Q3, they were at 0.2. Most recently, the company reported a dividend yield of 2.28%, which has decreased by 3.06% from last quarter's yield of 5.34%.

Most recently, Daktronics reported earnings per share at $0.27, whereas in Q1 earnings per share sat at $0.42. Its most recent dividend yield is at 3.4%, which has increased by 0.02% from 3.38% in the previous quarter.

Tower Semiconductor's earnings per share for Q4 sits at $0.55, whereas in Q3, they were at 0.54.

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.