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Overview Of Value Stocks In The Technology Sector

Author: Benzinga Insights | September 05, 2023 10:41am

What are Value Stocks?

A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued.

The following stocks are considered to be notable value stocks in the technology sector:

  1. OneConnect Financial Tech (NYSE:OCFT) - P/E: 0.09
  2. Canadian Solar (NASDAQ:CSIQ) - P/E: 4.87
  3. Avnet (NASDAQ:AVT) - P/E: 6.17
  4. United Microelectronics (NYSE:UMC) - P/E: 7.18
  5. Nokia (NYSE:NOK) - P/E: 5.0

OneConnect Financial Tech's earnings per share for Q2 sits at $-0.32, whereas in Q1, they were at -0.44. Canadian Solar's earnings per share for Q2 sits at $2.39, whereas in Q1, they were at 1.19. Avnet's earnings per share for Q4 sits at $2.06, whereas in Q3, they were at 2.0. The company's most recent dividend yield sits at 2.51%, which has decreased by 0.22% from 2.73% last quarter.

United Microelectronics's earnings per share for Q2 sits at $0.2, whereas in Q1, they were at 0.21. Most recently, the company reported a dividend yield of 2.28%, which has decreased by 3.06% from last quarter's yield of 5.34%.

Nokia saw an increase in earnings per share from 0.06 in Q1 to $0.08 now. Most recently, the company reported a dividend yield of 3.41%, which has increased by 0.56% from last quarter's yield of 2.85%.

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.

Posted In: AVT CSIQ NOK OCFT UMC

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