Overview Of Value Stocks In The Communication Services Sector

Author: Benzinga Insights | October 02, 2023 09:45am

What is 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.

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

1. Weibo (NASDAQ:WB) - P/E: 9.65
2. KT (NYSE:KT) - P/E: 7.13
3. National CineMedia (NASDAQ:NCMI) - P/E: 0.16
4. Verizon Communications (NYSE:VZ) - P/E: 6.48
5. Cogent Comms Hldgs (NASDAQ:CCOI) - P/E: 2.62

Weibo's earnings per share for Q2 sits at $0.53, whereas in Q1, they were at 0.47. This quarter, KT experienced an increase in earnings per share, which was $0.47 in Q1 and is now $0.6. National CineMedia saw an increase in earnings per share from -3.1 in Q1 to $-0.7 now. Its most recent dividend yield is at 6.94%, which has increased by 1.17% from 5.77% in the previous quarter.

Verizon Communications has reported Q2 earnings per share at $1.21, which has increased by 0.83% compared to Q1, which was 1.2. Its most recent dividend yield is at 7.78%, which has increased by 0.45% from 7.33% in the previous quarter.

Cogent Comms Hldgs's earnings per share for Q2 sits at $-0.67, whereas in Q1, they were at 0.13. Its most recent dividend yield is at 6.25%, which has increased by 1.17% from 5.08% in the previous quarter.

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: CCOI KT NCMI VZ WB