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A Look Into Real Estate Sector Value Stocks

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A Look Into Real Estate Sector Value Stocks

The Meaning Behind Value Stocks

A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued.

Benzinga Insights has compiled a list of value stocks in the real estate sector that may be worth watching:

  1. Dynex Cap (NYSE:DX) - P/E: 1.23
  2. New York Mortgage Trust (NASDAQ:NYMT) - P/E: 4.83
  3. Tremont Mortgage (NASDAQ:TRMT) - P/E: 5.48
  4. Western Asset Mortgage (NYSE:WMC) - P/E: 2.02
  5. AGNC Investment (NASDAQ:AGNC) - P/E: 3.26

Most recently, Dynex Cap reported earnings per share at 0.46, whereas in Q4 earnings per share sat at 0.45. Most recently, the company reported a dividend yield of 8.31%, which has increased by 0.21% from last quarter's yield of 8.1%.

New York Mortgage Trust saw a decrease in earnings per share from 0.18 in Q4 to 0.11 now. Its most recent dividend yield is at 8.54%, which has decreased by 2.01% from 10.55% in the previous quarter.

Tremont Mortgage's earnings per share for Q1 sits at 0.27, whereas in Q4, they were at 0.28. Tremont Mortgage does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Western Asset Mortgage reported earnings per share at 0.1, whereas in Q4 earnings per share sat at 0.12. Most recently, the company reported a dividend yield of 7.1%, which has decreased by 0.04% from last quarter's yield of 7.14%.

This quarter, AGNC Investment experienced an increase in earnings per share, which was 0.75 in Q4 and is now 0.76. Its most recent dividend yield is at 8.27%, which has decreased by 0.15% from 8.42% in the previous quarter.

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.

 

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