What defines a value stock?
A value stock traditionally has a lower price than stocks of companies in the same industry. This indicates that the company may be undervalued because investors are not showing as much interest in these companies. The most common way to check value is through the price/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 valuable tech stocks that may be worth watching:
- Zepp Health ZEPP – PER: 7.1
- BM Technologies BMTX – PER: 4.6
- Sigmatron International SGMA – PER: 2.63
- Taitron Components TAIT – PER: 5.47
- Audi AUUD – PER: 3.22
Most recently, Zepp Health reported earnings per share at -$0.19, while fourth quarter earnings per share were $0.12. This quarter, BM Technologies saw an increase in earnings per share, which was $0.23 in Q3 and is now $0.26. Earnings per share for Sigmatron International for Q3 came in at $0.75, while in Q2 it was $0.69. Taitron Components saw its earnings per share decline from 0.11 in Q3 to $0.07 now. Audidia saw its earnings per share fall from -0.05 in the fourth quarter to -$0.14 now.
Importance: A valuable security may need some time to rebound from its undervalued position. The risk of investing in a value stock is that this emergence never materializes.