Overview Of Value Stocks In The Technology Sector
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.
Below is a list of notable value stocks in the technology sector:
O2Micro Intl (NASDAQ: OIIM) - P/E: 0.28
Bridgeline Digital (NASDAQ: BLIN) - P/E: 0.63
China Index Holdings (NASDAQ: CIH) - P/E: 3.92
JinkoSolar Holding Co (NYSE: JKS) - P/E: 7.47
NCR (NYSE: NCR) - P/E: 5.89
O2Micro Intl has reported Q2 earnings per share at 0.03, which has increased by 150.0% compared to Q1, which was -0.06. O2Micro Intl does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Bridgeline Digital has reported Q3 earnings per share at -0.37, which has decreased by 212.12% compared to Q2, which was 0.33. Bridgeline Digital does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
China Index Holdings looks to be undervalued. It possesses an EPS of 0.1, which has not changed since last quarter (Q1). China Index Holdings does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
JinkoSolar Holding Co’s earnings per share for Q1 sits at 0.65, whereas in Q4, they were at 1.4. JinkoSolar Holding Co does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
NCR’s earnings per share for Q2 sits at 0.27, whereas in Q1, they were at 0.31. NCR does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
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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