5 Value Stocks In The Communication Services Sector
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 communication services sector that may be worth watching:
- Gogo (NASDAQ:GOGO) - P/E: 7.71
- Perion Network (NASDAQ:PERI) - P/E: 9.98
- Hello Gr (NASDAQ:MOMO) - P/E: 5.18
- Xunlei (NASDAQ:XNET) - P/E: 5.99
- Lendway (NASDAQ:LDWY) - P/E: 0.97
Gogo saw a decrease in earnings per share from 0.16 in Q3 to $0.11 now. This quarter, Perion Network experienced an increase in earnings per share, which was $0.84 in Q3 and is now $1.04. Most recently, Hello Gr reported earnings per share at $0.42, whereas in Q2 earnings per share sat at $0.43. Most recently, Xunlei reported earnings per share at $0.08, whereas in Q2 earnings per share sat at $0.13. Most recently, Lendway reported earnings per share at $0.63, whereas in Q2 earnings per share sat at $-0.02.
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.