The Meaning of Value Stocks
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:
- Paltalk (NASDAQ:PALT) – P/E: 9.35
- O2Micro International (NASDAQ:OIIM) – P/E: 8.87
- Bel Fuse (NASDAQ: BELFB) – P/E: 7.73
- EMCORE (NASDAQ: EMKR) – P/E: 8.17
- LG Display Co (NYSE: LPL) – P/E: 5.42
Most recently, Paltalk reported earnings per share at -0.05, while in Q2 earnings per share was 0.12. This quarter, O2Micro Intl saw an increase in earnings per share, which was 0.1 in Q2 and is now 0.12. This quarter, Bel Fuse saw a decline in earnings per share, which was 0.68 in Q2 and is now 0.51. Its most recent dividend yield is 1.94%, down 0.2% from 2.14% in the previous quarter.
EMCORE’s earnings per share for the fourth quarter came in at 0.17, while in the third quarter it was 0.2. Most recently, LG Display Co reported earnings per share at 0.56, while in the second quarter, earnings per share were 0.53.
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.