A Look Into Technology Sector Value Stocks
Understanding 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 technology sector that may be worth watching:
- IBEX (NASDAQ:IBEX) - P/E: 9.4
- Key Tronic (NASDAQ:KTCC) - P/E: 8.89
- Canadian Solar (NASDAQ:CSIQ) - P/E: 3.59
- ScanSource (NASDAQ:SCSC) - P/E: 8.86
- Tingo Group (NASDAQ:TIO) - P/E: 2.28
IBEX's earnings per share for Q4 sits at $0.33, whereas in Q3, they were at 0.59. Key Tronic saw a decrease in earnings per share from 0.18 in Q3 to $0.1 now. Most recently, Canadian Solar reported earnings per share at $2.39, whereas in Q1 earnings per share sat at $1.19. This quarter, ScanSource experienced a decrease in earnings per share, which was $0.96 in Q3 and is now $0.76. Most recently, Tingo Group reported earnings per share at $0.18, whereas in Q1 earnings per share sat at $0.33.
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.