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News

A Look Into Communication Services Sector Value Stocks

Author: Benzinga Insights | February 08, 2021 10:52am

What Defines a Value Stock?

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 communication services sector:

  1. Otelco (NASDAQ:OTEL) - P/E: 5.83
  2. MSG Networks (NYSE:MSGN) - P/E: 5.71
  3. Cango (NYSE:CANG) - P/E: 7.46
  4. SciPlay (NASDAQ:SCPL) - P/E: 9.66
  5. Momo (NASDAQ:MOMO) - P/E: 9.82

This quarter, Otelco experienced a decrease in earnings per share, which was 0.42 in Q2 and is now 0.36. Otelco does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

MSG Networks saw an increase in earnings per share from 0.61 in Q1 to 0.72 now. MSG Networks does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Cango's earnings per share for Q3 sits at 1.75, whereas in Q2, they were at 0.09. Cango does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

SciPlay saw a decrease in earnings per share from 0.27 in Q2 to 0.23 now. SciPlay does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Momo's earnings per share for Q3 sits at 0.44, whereas in Q2, they were at 0.43. Momo does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

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: CANG MOMO MSGN OTEL SCPL

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