Technology sector

(HPE), Dell Inc. (NASDAQ:DELL) – 5 Value Stocks in the Tech Sector

The Meaning of Value Stocks

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.

Below is a list of notable value stocks in the technology sector:

  1. Hewlett-Packard (NYSE: HPE) – P/E: 5.49
  2. Dell Technologies (NYSE: DELL) – P/E: 7.59
  3. Micron Technology (NASDAQ:MU) – P/E: 8.88
  4. ChipMOS TECHNOLOGY (NASDAQ:IMOS) – P/E: 6.87
  5. Zepp Health (NYSE: ZEPP) – P/E: 8.41

Earnings per share for Hewlett Packard for the first quarter came in at $0.53, while in the fourth quarter it was 0.52. Its most recent dividend yield is 3.02%, down 0.27% from 3.29% in the previous quarter.

Most recently, Dell Technologies reported earnings per share of $1.72, while third quarter earnings per share were $2.37. Its most recent dividend yield is 2.32%, down 1.43% from 3.75% in the prior quarter.

This quarter, Micron Technology saw lower earnings per share, which was $2.16 in the first quarter and is now $2.14. The company’s most recent dividend yield sits at 0.5%, up 0.02% from 0.48% last quarter.

Earnings per share for ChipMOS TECHNOLOGIES for the fourth quarter came in at $1.41, while in the third quarter it was 1.38. Its most recent dividend yield is 4.2%, down 1.27% from 5.47% in the prior quarter.

Zepp Health saw its earnings per share decline from 0.15 in Q3 to $0.12 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.