5 Value Stocks In The Communication Services Sector
Understanding Value Stocks
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:
- Verizon Communications (NYSE:VZ) - P/E: 7.0
- Hello Gr (NASDAQ:MOMO) - P/E: 8.0
- Sinclair (NASDAQ:SBGI) - P/E: 4.25
- Tegna (NYSE:TGNA) - P/E: 5.53
- GRAVITY Co (NASDAQ:GRVY) - P/E: 5.23
Verizon Communications's earnings per share for Q2 sits at $1.21, whereas in Q1, they were at 1.2. Its most recent dividend yield is at 7.33%, which has increased by 0.52% from 6.81% in the previous quarter.
Hello Gr's earnings per share for Q2 sits at $0.43, whereas in Q1, they were at 0.34. Sinclair has reported Q2 earnings per share at $1.67, which has decreased by 38.38% compared to Q1, which was 2.71. Most recently, the company reported a dividend yield of 7.33%, which has increased by 1.97% from last quarter's yield of 5.36%.
This quarter, Tegna experienced a decrease in earnings per share, which was $0.47 in Q1 and is now $0.44. Its most recent dividend yield is at 2.7%, which has increased by 0.31% from 2.39% in the previous quarter.
This quarter, GRAVITY Co experienced an increase in earnings per share, which was $4.03 in Q1 and is now $4.92.
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.