Benzinga | Apr 6, 2021 09:47AM EDT

Overview Of Value Stocks In The Technology Sector

Understanding Value Stocks

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 technology sector:

2 Cheetah Mobile (NYSE:CMCM) - P/E: 4.84

4 China Index Holdings (NASDAQ:CIH) - P/E: 4.76

Most recently, Cheetah Mobile reported earnings per share at 0.07, whereas in Q3 earnings per share sat at 0.27. Cheetah Mobile does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

China Index Holdings has reported Q4 earnings per share at 0.15, which has increased by 25.0% compared to Q3, which was 0.12. China Index Holdings 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.