Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 stocks made the list for top value stocks in the Electronic Equipment & Parts industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Electronic Equipment & Parts Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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7 Undervalued Electronic Equipment & Parts Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 7 undervalued stocks in the Electronic Equipment & Parts industry for Thursday, May 09, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Electronic Equipment & Parts industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Alpine 4 Holdings Inc’s Value Grade

Value Grade:

Alpine 4 Holdings, Inc. is a conglomerate company, which acquires businesses that fit into its drivers, stabilizer, facilitator business model. The Company operates through nine segments: A4 Construction Services Morris Sheet Metal (MSM), A4 Construction Services Excel Construction (Excel), A4 Manufacturing Quality Circuit Assembly (QCA), A4 Manufacturing Alternative Labs (Alt Labs), A4 Defense Thermal Dynamics, A4 Technologies RCA Commercial Electronics (RCA), A4 Technologies ElecJet, A4 Aerospace Vayu and All Other. A4 Construction Services-MSM and A4 Construction Services-Excel segments provide commercial construction services primarily as a sheet metal contractor. A4 Manufacturing-QCA segment is a contract manufacturer within the technology industry. A4 Manufacturing-Alt Labs segment is a contract manufacturer within the dietary and nutraceutical supplements industry. A4 Defense-TDI segment contracts for the United States Government.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Alpine 4 Holdings Inc has a Value Score of 82, which is considered to be undervalued.

When you look at Alpine 4 Holdings Inc’s price-to-sales ratio at 0.18 compared to the industry median at 1.55, this company has a lower price relative to revenue compared to its peers. This could make Alpine 4 Holdings Inc’s stock more attractive for value investors.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Alpine 4 Holdings Inc’s shareholder yield is lower than its industry median ratio of (0.84%). Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Alpine 4 Holdings Inc’s price-to-book ratio is lower than its industry median ratio of 1.55. This could make Alpine 4 Holdings Inc more attractive to investors looking for a new addition to their portfolio.

Daktronics Inc’s Value Grade

Value Grade:

Daktronics, Inc. is engaged in designing and manufacturing electronic scoreboards, programmable display systems and large screen video displays for sporting, commercial and transportation applications. The Company's segments include Commercial, Live Events, High School Park and Recreation, Transportation, and International. Its Commercial segment primarily consists of sales of its integrated video display systems, digital billboards, Galaxy and Fuelight product lines, and dynamic messaging systems to resellers (primarily sign companies), out-of-home (OOH) companies, national retailers, quick-serve restaurants, casinos, shopping centers, cruise ships, commercial building owners, and petroleum retailers. Its Live Events segment primarily consists of sales of integrated scoring and video display systems to college and professional sports facilities and convention centers and sales of its mobile display technology to video rental organizations and other live event type venues.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Daktronics Inc has a Value Score of 78, which is considered to be undervalued.

Daktronics Inc’s price-earnings ratio is 9.6 compared to the industry median at 22.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Daktronics Inc more attractive for value investors.

Daktronics Inc’s price-to-book ratio is lower than its peers. This could make Daktronics Inc more attractive for value investors when compared to the industry median at 1.55.

You can read more about Daktronics Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Data Call Technologies, Inc.’s Value Grade

Value Grade:

Data Call Technologies, Inc. is a provider of licensed content for the Digital Out of Home marketplace. The Company provides real-time information/content via digital signage and kiosk networks to its clients. The Company’s services put its clients in control of real-time news, sports, weather and other content, displayed within one or multiple locations, spanning from local, regional to global end points. Its Direct Lynk Manager is incorporated in the Direct Lynk Media platform which provides enhancements and options that enable the client to self-serve in a webstore environment. Its Direct Lynk System offers several types of data and information, in multiple formats, which includes headline news, business news, financial highlights, entertainment news and health/science news. The Company also enables its clients to create their own digital signage content feeds, which are delivered online directly to their chosen, electronic digital display devices at their various facilities.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Data Call Technologies, Inc. has a Value Score of 66, which is considered to be undervalued.

Data Call Technologies, Inc.’s price-to-book ratio is lower than its peers. This could make Data Call Technologies, Inc. more attractive for value investors when compared to the industry median at 1.55.

You can read more about Data Call Technologies, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

3D Systems Corp’s Value Grade

Value Grade:

3D Systems Corporation is an additive manufacturing solutions company. The Company is engaged in providing three-dimensional (3D) printing and digital manufacturing solutions, including 3D printers for plastics and metals, materials, software, and digital design tools. The Company’s segments include Healthcare Solutions and Industrial Solutions. Healthcare Solutions includes dental, medical devices, personalized health services and regenerative medicine. Industrial Solutions includes aerospace, defense, transportation and general manufacturing. The Company offers a range of 3D printing technologies, including Stereolithography (SLA), Selective Laser Sintering, Direct Metal Printing, MultiJet Printing, ColorJet Printing, polymer extrusion, and extrusion and SLA based bioprinting. The Company markets its products and services through subsidiaries in North America and South America, Europe and the Middle East and the Asia Pacific and Oceania region.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

3D Systems Corp has a Value Score of 70, which is considered to be undervalued.

3D Systems Corp’s price-to-book ratio is higher than its peers. This could make 3D Systems Corp less attractive for value investors when compared to the industry median at 1.55.

You can read more about 3D Systems Corp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

IEH Corp’s Value Grade

Value Grade:

IEH Corporation designs, develops, and manufactures printed circuit board (PCB) connectors and custom interconnects for high performance applications. The Company designs and manufactures hyperboloid connectors that accommodate military and aerospace specification standards. It markets primarily to companies in defense, aerospace, space and industrial applications in the United States, Canada, Europe, Southeast and Central Asia and the Mideast. Its hyperboloid products include PCB connectors and HBH Hybrid Power/Signal Hyperboloid Connectors. The hyperboloid socket is the hyperboloid-shaped sleeve formed by straight wires strung at an angle to the longitudinal axis. Its modular Hyperkinetic IEH connector is a shielded, high-density, high-speed interconnect that employs the mission-critical capabilities of the hyperboloid contact. It specializes in custom applications, many of which incorporate its Hyperboloid contact technology and meet the specific needs of its customers applications.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

IEH Corp has a Value Score of 79, which is considered to be undervalued.

IEH Corp’s price-to-book ratio is higher than its peers. This could make IEH Corp less attractive for value investors when compared to the industry median at 1.55.

You can read more about IEH Corp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

iRobot Corp’s Value Grade

Value Grade:

iRobot Corporation is a global consumer robot company. The Company designs, builds, sells and supports durable robots through the integration of software, electronics and hardware. Its portfolio of home robots and smart home devices features technologies for the connected home and advanced concepts in cleaning, mapping and navigation, human-robot interaction and physical solutions. Its products include Roomba Combo, Roomba, Braava, Braava jet and Root. It offers the Braava family of automatic floor mopping robots, which are designed for hard-surface floors. It also sells Roomba accessories and consumables, including the Clean Base Automatic Dirt Disposal, replacement dirt disposal bags for the clean base, filters, brushes and batteries. It also provides ongoing customer service and support through the iRobot HOME App. The Company offers its products through distributor and retail sales channels, as well as the online store on its Website and through its Home App.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

iRobot Corp has a Value Score of 63, which is considered to be undervalued.

iRobot Corp’s price-to-book ratio is higher than its peers. This could make iRobot Corp less attractive for value investors when compared to the industry median at 1.55.

You can read more about iRobot Corp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Socket Mobile Inc’s Value Grade

Value Grade:

Socket Mobile, Inc. is a provider of data capture and delivery solutions designed to enhance workplace productivity. The Company's solutions are incorporated into mobile applications used in point of sale (POS), commercial services (field workers), asset tracking, manufacturing and quality control processes, transportation and logistics (goods tracking and movement), event management (ticketing, entry, access control, and identification), medical and education. The Company's primary products are cordless data capture devices incorporating barcode scanning or RFID/Near Field Communications (NFC) technologies that connect over Bluetooth. Its product categories include XtremeScan family, SocketCam family, DuraScan Family, SocketScan family, DuraSled Family, and Software Developer Kit (CaptureSDK). The Company's products work with applications running on smartphones, mobile computers and tablets using operating systems from Apple (iOS), Google (Android) and Microsoft (Windows).

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Socket Mobile Inc has a Value Score of 79, which is considered to be undervalued.

Socket Mobile Inc’s price-to-book ratio is higher than its peers. This could make Socket Mobile Inc less attractive for value investors when compared to the industry median at 1.55.

You can read more about Socket Mobile Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Electronic Equipment & Parts Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Electronic Equipment & Parts stocks as well as other industrys.

Choosing Which of the 7 Best Electronic Equipment & Parts Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Alpine 4 Holdings Inc stock has a Value Grade of A.
• Daktronics Inc stock has a Value Grade of B.
• Data Call Technologies, Inc. stock has a Value Grade of B.
• 3D Systems Corp stock has a Value Grade of B.
• IEH Corp stock has a Value Grade of B.
• iRobot Corp stock has a Value Grade of B.
• Socket Mobile Inc stock has a Value Grade of B.

Now that you have a bit more background about each of the 7 undervalued stocks in the Electronic Equipment & Parts industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Electronic Equipment & Parts Stocks

Want to learn more about Electronic Equipment & Parts stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 7 Undervalued Electronic Equipment & Parts Stocks for Thursday, May 09
• 3 Undervalued Electronic Equipment & Parts Stocks for Wednesday, May 08
• Why Applied Optoelectronics Inc’s (AAOI) Stock Is Down 7.12%
• Why Hesai Group - ADR’s (HSAI) Stock Is Up 6.76%

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