A Look Into Communication Services Sector Value Stocks
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:
- Weibo (NASDAQ:WB) - P/E: 6.66
- Tegna (NYSE:TGNA) - P/E: 5.5
- DISH Network (NASDAQ:DISH) - P/E: 1.81
- Liberty SiriusXM Gr (NASDAQ:LSXMK) - P/E: 9.56
- National CineMedia (NASDAQ:NCMI) - P/E: 0.2
This quarter, Weibo experienced an increase in earnings per share, which was $0.53 in Q2 and is now $0.57. Tegna saw a decrease in earnings per share from 0.44 in Q2 to $0.39 now. Its most recent dividend yield is at 3.21%, which has increased by 0.51% from 2.7% in the previous quarter.
This quarter, DISH Network experienced a decrease in earnings per share, which was $0.31 in Q2 and is now $-0.26. Most recently, Liberty SiriusXM Gr reported earnings per share at $0.89, whereas in Q2 earnings per share sat at $0.08. National CineMedia saw an increase in earnings per share from -0.7 in Q2 to $-0.34 now. The company's most recent dividend yield sits at 6.94%, which has increased by 1.17% from 5.77% last quarter.
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.