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.
The following stocks are considered notable value stocks in the technology sector:
- OpFi (NYSE: OPFI) – PER: 1.67
- Canaan (NASDAQ:CAN) – P/E: 2.26
- Mobile socket (NASDAQ:SCKT) – P/E: 8.42
- Vishay Intertechnology (NYSE: VSH) – P/E: 8.93
- Intel (NASDAQ: INTC) – C/P: 9.6
OppFi’s earnings per share for the fourth quarter came in at $0.13, while in the third quarter it was 0.21. Canaan saw earnings per share jump from 0.41 in Q3 to $1.07 now. Socket Mobile reported fourth-quarter earnings per share of $0.11, up 57.14% from third-quarter earnings of $0.07. Vishay Intertechnology reported fourth quarter earnings per share of $0.62, down 1.59% from the third quarter, which was 0.63. Its most recent dividend yield is 2.0%, up 0.1% from 1.9% in the prior quarter.
Most recently, Intel reported earnings per share at $1.09, while third quarter earnings per share were $1.71. Most recently, the company announced a dividend yield of 3.11%, up 0.25% from last quarter’s 2.86% 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.