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What is 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 communication services sector that may be worth watching:
MSG Networks (NYSE:MSGN) - P/E: 5.83
Gray Television (NYSE:GTN) - P/E: 7.32
Turkcell Iletisim (NYSE:TKC) - P/E: 9.51
Phoenix New Media (NYSE:FENG) - P/E: 0.71
Telephone and Data (NYSE:TDS) - P/E: 9.82
MSG Networks saw a decrease in earnings per share from 0.97 in Q4 to 0.61 now. MSG Networks does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Most recently, Gray Television reported earnings per share at 1.14, whereas in Q2 earnings per share sat at -0.02. Gray Television does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Turkcell Iletisim saw an increase in earnings per share from 0.06 in Q2 to 0.08 now. Its most recent dividend yield is at 2.2%, which has decreased by 0.21% from 2.41% in the previous quarter.
Phoenix New Media saw a decrease in earnings per share from 0.05 in Q2 to 0.0 now. Phoenix New Media does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Telephone and Data has reported Q3 earnings per share at 0.66, which has increased by 17.86% compared to Q2, which was 0.56. Most recently, the company reported a dividend yield of 3.51%, which has increased by 0.57% from last quarter's yield of 2.94%.
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.
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