What Defines a Value Stock?
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.
The following stocks are considered to be notable value stocks in the communication services sector:
- Paramount Global (NASDAQ:PARAA) - P/E: 5.78
- DoubleDown Interactive (NASDAQ:DDI) - P/E: 7.08
- Educational Development (NASDAQ:EDUC) - P/E: 6.34
- Zedge (AMEX:ZDGE) - P/E: 9.03
- KT (NYSE:KT) - P/E: 6.26
Paramount Global has reported Q4 earnings per share at $0.26, which has decreased by 65.79% compared to Q3, which was 0.76. Most recently, the company reported a dividend yield of 2.46%, which has increased by 0.2% from last quarter's yield of 2.26%.
DoubleDown Interactive has reported Q4 earnings per share at $0.35, which has decreased by 30.0% compared to Q3, which was 0.5. Most recently, Educational Development reported earnings per share at $0.31, whereas in Q2 earnings per share sat at $0.23. Its most recent dividend yield is at 4.18%, which has increased by 0.18% from 4.0% in the previous quarter.
Most recently, Zedge reported earnings per share at $0.16, whereas in Q1 earnings per share sat at $0.14. KT saw a decrease in earnings per share from 0.57 in Q3 to $0.38 now.
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.
