What is a Value Stock?

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:

1. Gen Digital GEN - P/E: 9.91
2. ClearOne CLRO - P/E: 1.18
3. United Microelectronics UMC - P/E: 9.09
4. Wag Group PET - P/E: 1.67
5. Daqo New Energy DQ - P/E: 2.27

Gen Digital saw an increase in earnings per share from 0.47 in Q2 to $0.49 now. The company's most recent dividend yield sits at 2.13%, which has decreased by 0.54% from 2.67% last quarter.

ClearOne's earnings per share for Q3 sits at $-0.05, whereas in Q2, they were at -0.04. United Microelectronics's earnings per share for Q4 sits at $0.17, whereas in Q3, they were at 0.2. Its most recent dividend yield is at 2.28%, which has decreased by 3.06% from 5.34% in the previous quarter.

Wag Group's earnings per share for Q3 sits at $-0.06, whereas in Q2, they were at -0.1. This quarter, Daqo New Energy experienced a decrease in earnings per share, which was $1.75 in Q2 and is now $0.59.

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.