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.
Benzinga Insights has compiled a list of value stocks in the technology sector that may be worth watching:
- Daktronics (NASDAQ:DAKT) - P/E: 7.45
- Movella Holdings (NASDAQ:MVLA) - P/E: 0.13
- Sigmatron Intl (NASDAQ:SGMA) - P/E: 2.35
- Yalla Group (NYSE:YALA) - P/E: 8.54
- FiscalNote Holdings (NYSE:NOTE) - P/E: 4.17
Daktronics has reported Q2 earnings per share at $0.27, which has decreased by 35.71% compared to Q1, which was 0.42. The company's most recent dividend yield sits at 3.4%, which has increased by 0.02% from 3.38% last quarter.
Movella Holdings has been featured as a value stock. Movella Holdings's Q2 EPS sits at $-0.12, which has not changed since last quarter (Q1). Sigmatron Intl saw a decrease in earnings per share from 0.04 in Q1 to $0.0 now. This quarter, Yalla Group experienced an increase in earnings per share, which was $0.16 in Q2 and is now $0.21. Most recently, FiscalNote Holdings reported earnings per share at $-0.11, whereas in Q2 earnings per share sat at $-0.23.
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.