Technology sector

A look at value stocks in the technology sector

What defines a value stock?

A value stock is traditionally defined in terms of how investors in the market assess the future growth prospects of that company. Low P/E multiples are good basic indicators that the company is undervalued and most likely qualifies as a value stock.

Benzinga Insights has compiled a list of valuable tech stocks that may be worth watching:

  1. Vishay Intertechnology VSH – PER: 8.5
  2. Mobile socket SCKT – PER: 5.86
  3. resume HPQ – PER: 5.97
  4. Electronic Arrow ARW – PER: 6.79
  5. Vontier VNT – PER: 7.2

Vishay Intertechnology saw its earnings per share fall from 0.62 in the fourth quarter to $0.71 currently. The company’s most recent dividend yield sits at 2.02%, up 0.02% from 2.0% last quarter.

Most recently, Socket Mobile reported earnings per share of $0.04, while fourth quarter earnings per share were $0.11. Most recently, HP reported earnings per share of $1.08, while first quarter earnings per share were $1.1. Most recently, the company announced a dividend yield of 2.98%, up 0.27% from last quarter’s 2.71% yield.

Arrow Electronics reported first-quarter earnings per share of $5.43, up 1.12% from the fourth quarter, which was 5.37. Most recently, Vontier reported earnings per share of $0.7, while fourth quarter earnings per share were $0.83. Most recently, the company announced a dividend yield of 0.36%, which is a 0.0% down from last quarter’s 0.36% yield.

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.