What Defines 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.

The following stocks are considered to be notable value stocks in the technology sector:

1. Turtle Beach HEAR - P/E: 9.64
2. SunPower SPWR - P/E: 8.65
3. Cheetah Mobile CMCM - P/E: 5.11
4. Network-1 Technologies NTIP - P/E: 8.9
5. China Index Holdings CIH - P/E: 3.69

Turtle Beach's earnings per share for Q1 sits at 0.52, whereas in Q4, they were at 0.84. Turtle Beach does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, SunPower reported earnings per share at 0.05, whereas in Q4 earnings per share sat at 0.14. SunPower does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

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.

Network-1 Technologies has reported Q1 earnings per share at 0.38, which has increased by 733.33% compared to Q4, which was -0.06. Most recently, the company reported a dividend yield of 2.75%, which has decreased by 1.77% from last quarter's yield of 4.52%.

China Index Holdings's earnings per share for Q4 sits at 0.15, whereas in Q3, they were at 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.