5 Value Stocks To Watch In The Communication Services Sector
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.
Below is a list of notable value stocks in the communication services sector:
- Weibo (NASDAQ:WB) - P/E: 5.46
- AT&T (NYSE:T) - P/E: 8.53
- National CineMedia (NASDAQ:NCMI) - P/E: 0.19
- Tegna (NYSE:TGNA) - P/E: 5.0
- Lendway (NASDAQ:LDWY) - P/E: 0.86
Most recently, Weibo reported earnings per share at $0.57, whereas in Q2 earnings per share sat at $0.53. AT&T has reported Q4 earnings per share at $0.54, which has decreased by 15.62% compared to Q3, which was 0.64. Its most recent dividend yield is at 6.76%, which has decreased by 0.64% from 7.4% in the previous quarter.
National CineMedia has reported Q3 earnings per share at $-0.34, which has increased by 51.43% compared to Q2, which was -0.7. Most recently, the company reported a dividend yield of 6.94%, which has increased by 1.17% from last quarter's yield of 5.77%.
Tegna's earnings per share for Q3 sits at $0.39, whereas in Q2, they were at 0.44. Most recently, the company reported a dividend yield of 3.14%, which has decreased by 0.07% from last quarter's yield of 3.21%.
This quarter, Lendway experienced an increase in earnings per share, which was $-0.02 in Q2 and is now $0.63.
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.