What Defines a Value Stock?
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.
The following stocks are considered to be notable value stocks in the technology sector:
- OppFi (NYSE:OPFI) - P/E: 1.67
- Canaan (NASDAQ:CAN) - P/E: 2.26
- Socket Mobile (NASDAQ:SCKT) - P/E: 8.42
- Vishay Intertechnology (NYSE:VSH) - P/E: 8.93
- Intel (NASDAQ:INTC) - P/E: 9.6
OppFi's earnings per share for Q4 sits at $0.13, whereas in Q3, they were at 0.21. Canaan saw an increase in earnings per share from 0.41 in Q3 to $1.07 now. Socket Mobile has reported Q4 earnings per share at $0.11, which has increased by 57.14% compared to Q3, which was 0.07. Vishay Intertechnology has reported Q4 earnings per share at $0.62, which has decreased by 1.59% compared to Q3, which was 0.63. Its most recent dividend yield is at 2.0%, which has increased by 0.1% from 1.9% in the previous quarter.
Most recently, Intel reported earnings per share at $1.09, whereas in Q3 earnings per share sat at $1.71. Most recently, the company reported a dividend yield of 3.11%, which has increased by 0.25% from last quarter's yield of 2.86%.
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.
