A Look Into Technology Sector Value Stocks
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.
Benzinga Insights has compiled a list of value stocks in the technology sector that may be worth watching:
- Sanmina (NASDAQ:SANM) - P/E: 9.91
- ChipMOS TECHNOLOGIES (NASDAQ:IMOS) - P/E: 8.46
- PagSeguro Digital (NYSE:PAGS) - P/E: 9.42
- Movella Holdings (NASDAQ:MVLA) - P/E: 0.23
- MIND C.T.I. (NASDAQ:MNDO) - P/E: 8.0
Sanmina's earnings per share for Q3 sits at $1.55, whereas in Q2, they were at 1.59. ChipMOS TECHNOLOGIES's earnings per share for Q2 sits at $0.56, whereas in Q1, they were at 0.18. Most recently, the company reported a dividend yield of 8.81%, which has increased by 4.61% from last quarter's yield of 4.2%.
This quarter, PagSeguro Digital experienced an increase in earnings per share, which was $0.23 in Q1 and is now $0.24. Movella Holdings looks to be undervalued. It possesses an EPS of $-0.12, which has not changed since last quarter (Q1). 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.
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.