What are 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.
The following stocks are considered to be notable value stocks in the technology sector:
- Avnet (NASDAQ:AVT) - P/E: 9.26
- Yalla Group (NYSE:YALA) - P/E: 8.42
- Vontier (NYSE:VNT) - P/E: 7.96
- Cellebrite DI (NASDAQ:CLBT) - P/E: 7.99
- Consensus Cloud Solutions (NASDAQ:CCSI) - P/E: 9.62
This quarter, Avnet experienced an increase in earnings per share, which was $1.51 in Q2 and is now $2.15. Most recently, the company reported a dividend yield of 2.25%, which has decreased by 0.23% from last quarter's yield of 2.48%.
Most recently, Yalla Group reported earnings per share at $0.15, whereas in Q4 earnings per share sat at $0.16. Vontier has reported Q1 earnings per share at $0.7, which has decreased by 15.66% compared to Q4, which was 0.83. Its most recent dividend yield is at 0.36%, which has ('', 'not changed') by 0.0% from 0.36% in the previous quarter.
Cellebrite DI's earnings per share for Q1 sits at $0.01, whereas in Q4, they were at 0.03. Most recently, Consensus Cloud Solutions reported earnings per share at $1.33, whereas in Q4 earnings per share sat at $1.46.
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.
