What are Value Stocks?
A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company's future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labelled as a value stock.
Benzinga Insights has compiled a list of value stocks in the communication services sector that may be worth watching:
- AMC Networks (NASDAQ:AMCX) - P/E: 6.15
- AT&T (NYSE:T) - P/E: 8.24
- Verizon Communications (NYSE:VZ) - P/E: 9.76
- Urban One (NASDAQ:UONE) - P/E: 9.83
- Millicom Intl Cellular (NASDAQ:TIGO) - P/E: 4.2
AMC Networks has reported Q4 earnings per share at $0.54, which has decreased by 79.85% compared to Q3, which was 2.68. Most recently, AT&T reported earnings per share at $0.77, whereas in Q4 earnings per share sat at $0.78. Its most recent dividend yield is at 4.77%, which has decreased by 4.61% from 9.38% in the previous quarter.
Verizon Communications has reported Q1 earnings per share at $1.35, which has increased by 3.05% compared to Q4, which was 1.31. The company's most recent dividend yield sits at 4.73%, which has decreased by 0.41% from 5.14% last quarter.
Urban One has reported Q4 earnings per share at $0.12, which has decreased by 52.0% compared to Q3, which was 0.25. Most recently, Millicom Intl Cellular reported earnings per share at $-0.27, whereas in Q3 earnings per share sat at $0.05.
The Significance: A value stock may need some time to rebound from its undervalued position. The risk of investing in a value stock is that this emergence may never materialize.
