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 real estate sector:
- AGNC Investment AGNC - P/E: 3.03
- Tremont Mortgage TRMT - P/E: 5.61
- Orchid Island Capital ORC - P/E: 4.79
- Kimco Realty KIM - P/E: 9.25
- IRSA Propiedades IRCP - P/E: 1.64
This quarter, AGNC Investment experienced an increase in earnings per share, which was 0.75 in Q4 and is now 0.76. The company's most recent dividend yield sits at 8.64%, which has increased by 0.92% from 7.72% last quarter.
Tremont Mortgage saw a decrease in earnings per share from 0.28 in Q4 to 0.27 now. Tremont Mortgage does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Most recently, Orchid Island Capital reported earnings per share at -0.34, whereas in Q4 earnings per share sat at 0.23. Its most recent dividend yield is at 13.73%, which has decreased by 0.61% from 14.34% in the previous quarter.
This quarter, Kimco Realty experienced an increase in earnings per share, which was 0.31 in Q4 and is now 0.33. Its most recent dividend yield is at 3.26%, which has decreased by 0.59% from 3.85% in the previous quarter.
Most recently, IRSA Propiedades reported earnings per share at -0.1, whereas in Q2 earnings per share sat at -1.22. IRSA Propiedades 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.
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