7 Undervalued Electronic Equipment, Instruments & Components Stocks for Wednesday, October 16

By Tudor Pop
October 16, 2024
Diamond graphic indicating best value stocks in their industry
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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, Instruments & Components 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, Instruments & Components 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, Instruments & Components 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, Instruments & Components industry for Wednesday, October 16, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Electronic Equipment, Instruments & Components industry median.

Company Ticker Price/Sales Price/Earnings EV/EBITDA Shareholder Yield Price/Book Value Price/Free Cash Flow Value Grade
Alpine 4 Holdings, Inc. ALPP 0.09 na na (10.9%) 0.13 na A
Astrotech Corporation ASTC 7.99 na 1.7 (1.1%) 0.39 na B
Jabil Inc. JBL 0.53 11.1 10.9 12.6% 8.23 17.1 B
Paragon Technologies, Inc. PGNT 0.08 na 8.9 (0.8%) 0.46 200.3 B
Universal Security Instruments, Inc. UUU 0.15 na na 0.0% 0.56 na A
VerifyMe, Inc. VRME 0.51 na na (4.8%) 1.06 13.0 B
Vishay Intertechnology, Inc. VSH 0.80 14.7 7.4 3.9% 1.13 na A

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:

Metric Score ALPP Industry Median
Price/Sales 4 0.09 2.02
Price/Earnings na na 24.8
EV/EBITDA na na 12.6
Shareholder Yield 80 (10.9%) (0.4%)
Price/Book Value 3 0.13 1.96
Price/Free Cash Flow na na 20.8

Alpine 4 Holdings, Inc. operates as an industrial conglomerate in North America. The company offers automotive technologies, including 6th Sense Auto, a connected car technology that provides various advantages to management, sales, finance, and service departments in the automotive dealership industry for productivity, profitability, and customer retention; and BrakeActive, a safety device that improve vehicle’s third brake light’s ability to reduce or prevent a rear-end collision. It also designs, fabricates, and installs dust collectors, commercial ductwork, kitchen hoods, industrial ventilation systems, machine guards, architectural work, water furnaces, and other products, as well as offers specialized spiral ductwork. In addition, the company provides logistics services for various industries, such as medical, consumer electronics, energy, and disaster relief; electronic contract manufacturing services; contract manufacturing services for dietary and nutritional supplements; international contracting, fabricator, and project management services; and geospatial and 3D data services for various industries, including construction, oil/gas, mining, and quarries. It also manufactures and sells electronic components; and designs, manufactures, and distributes commercial LED lighting and electronics, such as televisions, mounting solutions, projectors and screens, audio equipment, digital signage, mobile audio and video systems, and various wire and connecting products. The company was formerly known as Alpine 4 Technologies, Ltd. and changed its name to Alpine 4 Holdings, Inc. in March 2021. Alpine 4 Holdings, Inc. was incorporated in 2014 and is based in Phoenix, Arizona.

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 85, which is considered to be undervalued.

When you look at Alpine 4 Holdings, Inc.’s price-to-sales ratio at 0.09 compared to the industry median at 2.02, 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 (0.35%). 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 1.96. This could make Alpine 4 Holdings, Inc. more attractive to investors looking for a new addition to their portfolio.

Astrotech Corporation’s Value Grade

Value Grade:

Metric Score ASTC Industry Median
Price/Sales 87 7.99 2.02
Price/Earnings na na 24.8
EV/EBITDA 5 1.7 12.6
Shareholder Yield 60 (1.1%) (0.4%)
Price/Book Value 10 0.39 1.96
Price/Free Cash Flow na na 20.8

Astrotech Corporation operates as a mass spectrometry company worldwide. It owns and licenses the intellectual property related to the Astrotech Mass Spectrometer Technology, a platform mass spectrometry technology. The company also develops TRACER 1000, a mass spectrometer-based explosive trace detector to replace the explosives trace detectors used at airports, cargo and other secured facilities, and borders. In addition, it develops AGLAB-1000, a mass spectrometer for use in the hemp and cannabis market. Further, the company develops BreathTest-1000, a breath analysis tool to screen for volatile organic compound metabolites found in a person’s breath; and Pro-Control 1000-D2, a mass spectrometer. The company was formerly known as SPACEHAB, Inc. and changed its name to Astrotech Corporation in 2009. The company was incorporated in 1984 and is based in Austin, Texas.

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.

Astrotech Corporation has a Value Score of 63, which is considered to be undervalued.

Astrotech Corporation’s price-to-book ratio is higher than its peers. This could make Astrotech Corporation less attractive for value investors when compared to the industry median at 1.96.

You can read more about Astrotech Corporation’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.

Jabil Inc.’s Value Grade

Value Grade:

Metric Score JBL Industry Median
Price/Sales 20 0.53 2.02
Price/Earnings 24 11.1 24.8
EV/EBITDA 43 10.9 12.6
Shareholder Yield 3 12.6% (0.4%)
Price/Book Value 89 8.23 1.96
Price/Free Cash Flow 44 17.1 20.8

Jabil Inc. provides manufacturing services and solutions worldwide. It operates in two segments, Electronics Manufacturing Services and Diversified Manufacturing Services. The company offers electronics design, production, and product management services; electronic circuit design services, such as application-specific integrated circuit design, firmware development, and rapid prototyping services; and designs plastic and metal enclosures that include the electro-mechanics, such as the printed circuit board assemblies (PCBA). It also provides three-dimensional mechanical design comprising the analysis of electronic, electro-mechanical, and optical assemblies, as well as various industrial design, mechanism development, and tooling management services. In addition, the company provides computer-assisted design services consisting of PCBA design, as well as PCBA design validation and verification services; and other consulting services, such as the generation of a bill of materials, approved vendor list, and assembly equipment configuration for various PCBA designs. Further, it offers product and process validation services, such as product system, product safety, regulatory compliance, and reliability tests, as well as manufacturing test solution development services. Additionally, the company provides systems assembly, test, direct-order fulfillment, and configure-to-order services. It serves 5G, wireless and cloud, digital print and retail, industrial and semi-cap, networking and storage, automotive and transportation, connected devices, healthcare and packaging, and mobility industries. The company was formerly known as Jabil Circuit, Inc. and changed its name to Jabil Inc. in June 2017. Jabil Inc. was founded in 1966 and is headquartered in Saint Petersburg, Florida.

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.

Jabil Inc. has a Value Score of 69, which is considered to be undervalued.

Jabil Inc.’s price-earnings ratio is 11.1 compared to the industry median at 24.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Jabil Inc. more attractive for value investors.

Jabil Inc.’s price-to-book ratio is lower than its peers. This could make Jabil Inc. more attractive for value investors when compared to the industry median at 1.96.

You can read more about Jabil 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.

Paragon Technologies, Inc.’s Value Grade

Value Grade:

Metric Score PGNT Industry Median
Price/Sales 3 0.08 2.02
Price/Earnings na na 24.8
EV/EBITDA 33 8.9 12.6
Shareholder Yield 58 (0.8%) (0.4%)
Price/Book Value 13 0.46 1.96
Price/Free Cash Flow 97 200.3 20.8

Paragon Technologies, Inc., together with its subsidiaries, engages in the automation, distribution, and real estate activities in North America, Latin America, Europe, and Asia. It offers various systems, software and services, including complete order fulfillment, assembly, product advancing systems, productivity, production and order fulfillment accuracy, and safety enhancements for automated material handling and order processing applications to distribution centers, manufacturers, and warehouses. The company provides towline conveyance used in heavy industrial products manufacturing and warehouses; and technologies composing patented A-Frame and Mobile-Matic robotic picking system. In addition, the company distributes servers, workstations, storage, networking, and audio-visual products, and power protection systems; notebook and desktop computers, printers, projectors, gaming products, and accessories; consumer electronics and home appliances; and offers managed services, printing, electronic documents management, and electronic invoicing, as well as high-capacity storage solutions to businesses. Further, it acquires, invests in, and manages residential real estate; and invests in businesses and marketable securities under the investment management policy. The company was formerly known as SI Handling Systems, Inc. and changed its name to Paragon Technologies, Inc. in April 2000. Paragon Technologies, Inc. was incorporated in 1958 and is headquartered in Easton, Pennsylvania.

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.

Paragon Technologies, Inc. has a Value Score of 62, which is considered to be undervalued.

Paragon Technologies, Inc.’s price-to-book ratio is higher than its peers. This could make Paragon Technologies, Inc. less attractive for value investors when compared to the industry median at 1.96.

You can read more about Paragon 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.

Universal Security Instruments, Inc.’s Value Grade

Value Grade:

Metric Score UUU Industry Median
Price/Sales 7 0.15 2.02
Price/Earnings na na 24.8
EV/EBITDA na na 12.6
Shareholder Yield 50 0.0% (0.4%)
Price/Book Value 16 0.56 1.96
Price/Free Cash Flow na na 20.8

Universal Security Instruments, Inc., together with its subsidiary, engages in the marketing and distribution of safety and security products in the United States. The company offers a line of safety alarms units, including replaceable batteries, sealed batteries, and battery backup alarms; and smoke alarms, which include hearing impaired and heat alarms, as well as carbon monoxide alarms, door chimes, ventilation products, ground fault circuit interrupters, and other electrical devices under the UNIVERSAL and USI Electric trade names. It provides its products to wholesale distributors; chain, discount, television retailers; home center stores; catalog and mail order companies; electrical and lighting distributors, and manufactured housing companies; and other distributors. It also sells its products through independent sales organizations and sales representatives, as well as through its own sales catalogs and brochures, and website. Universal Security Instruments, Inc. was incorporated in 1969 and is headquartered in Owings Mills, Maryland.

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.

Universal Security Instruments, Inc. has a Value Score of 92, which is considered to be undervalued.

Universal Security Instruments, Inc.’s price-to-book ratio is higher than its peers. This could make Universal Security Instruments, Inc. less attractive for value investors when compared to the industry median at 1.96.

You can read more about Universal Security Instruments, 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.

VerifyMe, Inc.’s Value Grade

Value Grade:

Metric Score VRME Industry Median
Price/Sales 20 0.51 2.02
Price/Earnings na na 24.8
EV/EBITDA na na 12.6
Shareholder Yield 74 (4.8%) (0.4%)
Price/Book Value 34 1.06 1.96
Price/Free Cash Flow 33 13.0 20.8

VerifyMe, Inc., together with its subsidiaries, provides traceability and customer support services through software and process technology. The company operates through two segments, Precision Logistics and Authentication. The Precision Logistics segment offers predictive analytics for optimizing delivery of time and temperature sensitive perishable products. This segment provides PeriTrack customer dashboard, an integrated web portal tool that gives its customers an in-depth look at their shipping activities based on real-time data. It also offers service center, pre-transit, post-delivery, and weather/traffic services. The Authentication segment provides technology solutions to connect brands with consumers through its products, as well as brand protection and supply chain functions, such as counterfeit prevention. This segment offers VerifyMe Engage, which allows the brand owners to gather business intelligence and engage with customers; VerifyMe Authenticate for authentication of labels, packaging, and products; and VerifyMe Track & Trace for unit level traceability and supply chain control. The company has a strategic partnership with INX International Ink Co. The company was formerly known as LaserLock Technologies, Inc. and changed its name to VerifyMe, Inc. in July 2015. VerifyMe, Inc. was incorporated in 1999 and is headquartered in Lake Mary, Florida.

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.

VerifyMe, Inc. has a Value Score of 63, which is considered to be undervalued.

VerifyMe, Inc.’s price-to-book ratio is higher than its peers. This could make VerifyMe, Inc. less attractive for value investors when compared to the industry median at 1.96.

You can read more about VerifyMe, 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.

Vishay Intertechnology, Inc.’s Value Grade

Value Grade:

Metric Score VSH Industry Median
Price/Sales 28 0.80 2.02
Price/Earnings 37 14.7 24.8
EV/EBITDA 24 7.4 12.6
Shareholder Yield 20 3.9% (0.4%)
Price/Book Value 37 1.13 1.96
Price/Free Cash Flow na na 20.8

Vishay Intertechnology, Inc. manufactures and sells discrete semiconductors and passive electronic components in Asia, Europe, and the Americas. The company operates through Metal Oxide Semiconductor Field Effect Transistors (MOSFETs), Diodes, Optoelectronic Components, Resistors, Inductors, and Capacitors segments. The MOSFETs segment offers low- and medium-voltage TrenchFET MOSFETs, high-voltage planar MOSFETs, high voltage Super Junction MOSFETs, power integrated circuits, and integrated function power devices. The Diodes segment provides rectifiers, small signal diodes, protection diodes, thyristors/silicon-controlled rectifiers, and power modules. The Optoelectronic Components segment contains standard and customer specific optoelectronic components, such as infrared (IR) emitters and detectors, IR remote control receivers, optocouplers, solid-state relays, optical sensors, light-emitting diodes, 7-segment displays, and IR data transceiver modules. The Resistors segment offers resistors, which are basic components used in various forms of electronic circuitry to adjust and regulate levels of voltage and current. The Inductors segment provides inductors for use as an internal magnetic field to change alternating current phase and resist alternating current. The Capacitors segment offers capacitors, which store energy and discharge it when needed. It sells its products under Siliconix, Dale, Draloric, Beyschlag, Sfernice, MCB, UltraSource, Applied Thin-Film Products, IHLP, HiRel Systems, Sprague, Vitramon, Barry, Roederstein, ESTA, and BCcomponents brand names. The company serves industrial, automotive, telecommunications, computing, consumer products, power supplies, military and aerospace, and medical end markets. Vishay Intertechnology, Inc. was incorporated in 1962 and is headquartered in Malvern, Pennsylvania.

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.

Vishay Intertechnology, Inc. has a Value Score of 85, which is considered to be undervalued.

Vishay Intertechnology, Inc.’s price-earnings ratio is 14.7 compared to the industry median at 24.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Vishay Intertechnology, Inc. more attractive for value investors.

Vishay Intertechnology, Inc.’s price-to-book ratio is higher than its peers. This could make Vishay Intertechnology, Inc. less attractive for value investors when compared to the industry median at 1.96.

You can read more about Vishay Intertechnology, 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.

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Other Electronic Equipment, Instruments & Components 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, Instruments & Components stocks as well as other industrys.

Choosing Which of the 7 Best Electronic Equipment, Instruments & Components 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.
  • Astrotech Corporation stock has a Value Grade of B.
  • Jabil Inc. stock has a Value Grade of B.
  • Paragon Technologies, Inc. stock has a Value Grade of B.
  • Universal Security Instruments, Inc. stock has a Value Grade of A.
  • VerifyMe, Inc. stock has a Value Grade of B.
  • Vishay Intertechnology, Inc. stock has a Value Grade of A.

Now that you have a bit more background about each of the 7 undervalued stocks in the Electronic Equipment, Instruments & Components 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.

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Additional Resources About Electronic Equipment, Instruments & Components Stocks

Want to learn more about Electronic Equipment, Instruments & Components 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.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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