Benzinga | Mar 29, 2021 10:02AM EDT

5 Value Stocks To Watch In The Communication Services Sector

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.

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

2 Gray Television (NYSE:GTN) - P/E: 4.92

4 Momo (NASDAQ:MOMO) - P/E: 9.77

6 Daily Journal (NASDAQ:DJCO) - P/E: 8.89

8 Cango (NYSE:CANG) - P/E: 1.24

10 Nexstar Media Group (NASDAQ:NXST) - P/E: 8.17

Gray Television saw an increase in earnings per share from 1.14 in Q3 to 2.26 now. Gray Television does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Momo experienced an increase in earnings per share, which was 0.44 in Q3 and is now 0.58. Momo does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Daily Journal saw an increase in earnings per share from 23.09 in Q4 to 42.93 now. Daily Journal does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Cango has reported Q4 earnings per share at 1.61, which has decreased by 8.0% compared to Q3, which was 1.75. Cango does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Nexstar Media Group saw an increase in earnings per share from 4.08 in Q3 to 7.97 now. The company's most recent dividend yield sits at 2.56%, which has ('', 'not changed') by 0.0% from 2.56% last 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.