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.

HP (NYSE:HPQ) – P/E: 8.81
ReneSola (NYSE:SOL) – P/E: 4.9
Bel Fuse (NASDAQ:BELFB) – P/E: 7.21
Network-1 Technologies (AMEX:NTIP) – P/E: 8.47
Agora (NASDAQ:API) – P/E: 1.53

Most recently, HP reported earnings per share at 1.0, whereas in Q2 earnings per share sat at 0.93. Its most recent dividend yield is at 2.66%, which has increased by 0.26% from 2.4% in the previous quarter.

ReneSola saw an increase in earnings per share from 0.05 in Q1 to 0.11 now. ReneSola does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Bel Fuse has reported Q2 earnings per share at 0.68, which has increased by 395.65% compared to Q1, which was -0.23. Its most recent dividend yield is at 2.14%, which has increased by 0.58% from 1.56% in the previous quarter.

Network-1 Technologies saw a decrease in earnings per share from 0.38 in Q1 to -0.03 now. Most recently, the company reported a dividend yield of 3.28%, which has increased by 0.53% from last quarter’s yield of 2.75%.

This quarter, Agora experienced a decrease in earnings per share, which was -0.04 in Q1 and is now -0.05. Agora does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

These 5 value stocks were selected by Benzinga Insights based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.

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