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 communication services sector:

1. Gray Television GTN - P/E: 5.3
2. Tegna TGNA - P/E: 8.63
3. Nexstar Media Group NXST - P/E: 8.66
4. Daily Journal DJCO - P/E: 9.35
5. Jiayin Gr JFIN - P/E: 6.44

This quarter, Gray Television experienced an increase in earnings per share, which was 1.14 in Q3 and is now 2.26. Gray Television does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Tegna's earnings per share for Q4 sits at 1.16, whereas in Q3, they were at 0.59. The company's most recent dividend yield sits at 1.59%, which has decreased by 0.66% from 2.25% last quarter.

Nexstar Media Group's earnings per share for Q4 sits at 7.97, whereas in Q3, they were at 4.08. The company's most recent dividend yield sits at 2.56%, which has ('', 'not changed') by 0.0% from 2.56% last quarter.

This quarter, Daily Journal experienced an increase in earnings per share, which was 23.09 in Q4 and is now 42.93. Daily Journal does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Jiayin Gr reported earnings per share at 0.06, whereas in Q2 earnings per share sat at 0.03. Jiayin Gr 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.