Benzinga | Jul 26, 2021 10:25AM EDT

5 Value Stocks In The Communication Services Sector

Understanding 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.

Benzinga Insights has compiled a list of value stocks in the communication services sector that may be worth watching:

2 Cango (NYSE:CANG) - P/E: 1.5

4 Scienjoy Holding (NASDAQ:SJ) - P/E: 5.39

6 Nexstar Media Group (NASDAQ:NXST) - P/E: 7.82

8 Gray Television (NYSE:GTN) - P/E: 6.09

10 Momo (NASDAQ:MOMO) - P/E: 8.62

Cango's earnings per share for Q1 sits at -0.26, whereas in Q4, they were at 1.61. Cango does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Scienjoy Holding has reported Q1 earnings per share at 0.35, which has increased by 29.63% compared to Q4, which was 0.27. Scienjoy Holding does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Nexstar Media Group experienced a decrease in earnings per share, which was 7.97 in Q4 and is now 4.42. Its most recent dividend yield is at 1.86%, which has decreased by 0.7% from 2.56% in the previous quarter.

Gray Television's earnings per share for Q1 sits at 0.27, whereas in Q4, they were at 2.26. Most recently, the company reported a dividend yield of 1.38%, which has decreased by 0.23% from last quarter's yield of 1.61%.

Most recently, Momo reported earnings per share at 0.44, whereas in Q4 earnings per share sat at 0.58. 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.