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5 Value Stocks To Watch In The Communication Services Sector

Author: Benzinga Insights | September 11, 2023 10:45am

The Meaning Behind 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.

Below is a list of notable value stocks in the communication services sector:

  1. Verizon Communications (NYSE:VZ) - P/E: 6.69
  2. Liberty SiriusXM Gr (NASDAQ:LSXMA) - P/E: 8.8
  3. Liberty SiriusXM Gr (NASDAQ:LSXMK) - P/E: 8.9
  4. Steel Connect (NASDAQ:STCN) - P/E: 7.55
  5. Sphere Entertainment (NYSE:SPHR) - P/E: 7.09

This quarter, Verizon Communications experienced an increase in earnings per share, which was $1.2 in Q1 and is now $1.21. Most recently, the company reported a dividend yield of 7.78%, which has increased by 0.45% from last quarter's yield of 7.33%.

Most recently, Liberty SiriusXM Gr reported earnings per share at $0.08, whereas in Q1 earnings per share sat at $0.06. Liberty SiriusXM Gr's earnings per share for Q2 sits at $0.08, whereas in Q1, they were at 0.38. Steel Connect saw an increase in earnings per share from -0.19 in Q2 to $0.37 now. This quarter, Sphere Entertainment experienced an increase in earnings per share, which was $-1.55 in Q3 and is now $10.21.

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: LSXMA LSXMK SPHR STCN VZ

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