A Look Into Technology Sector Value Stocks
The Meaning Behind 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 technology sector:
- Bel Fuse (NASDAQ:BELFB) - P/E: 8.56
- PagSeguro Digital (NYSE:PAGS) - P/E: 9.79
- MIND C.T.I. (NASDAQ:MNDO) - P/E: 8.02
- Daqo New Energy (NYSE:DQ) - P/E: 2.74
- Vishay Intertechnology (NYSE:VSH) - P/E: 9.06
Bel Fuse saw an increase in earnings per share from 1.49 in Q1 to $1.99 now. The company's most recent dividend yield sits at 0.53%, which has decreased by 0.11% from 0.64% last quarter.
PagSeguro Digital has reported Q1 earnings per share at $0.23, which has decreased by 4.17% compared to Q4, which was 0.24. This quarter, MIND C.T.I. experienced a decrease in earnings per share, which was $0.07 in Q1 and is now $0.06. Its most recent dividend yield is at 10.32%, which has increased by 1.62% from 8.7% in the previous quarter.
Daqo New Energy saw a decrease in earnings per share from 3.93 in Q1 to $1.75 now. Vishay Intertechnology saw a decrease in earnings per share from 0.79 in Q1 to $0.68 now. Its most recent dividend yield is at 1.57%, which has decreased by 0.3% from 1.87% in the previous 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.