Overview Of Value Stocks In The Real Estate Sector

Understanding 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. Realogy Holdings RLGY - P/E: 6.84
  2. Two Harbors Investment TWO - P/E: 3.78
  3. Western Asset Mortgage WMC - P/E: 2.53
  4. Cedar Realty Trust CDR - P/E: 5.11
  5. Capstead Mortgage CMO - P/E: 8.97

This quarter, Realogy Holdings experienced an increase in earnings per share, which was 0.34 in Q1 and is now 1.33. Most recently, the company reported a dividend yield of 7.0%, which has increased by 4.0% from last quarter's yield of 3.0%.

Two Harbors Investment's earnings per share for Q2 sits at 0.19, whereas in Q1, they were at 0.17. Most recently, the company reported a dividend yield of 9.07%, which has increased by 0.26% from last quarter's yield of 8.81%.

This quarter, Western Asset Mortgage experienced a decrease in earnings per share, which was 0.1 in Q1 and is now 0.05. The company's most recent dividend yield sits at 6.61%, which has decreased by 0.49% from 7.1% last quarter.

This quarter, Cedar Realty Trust experienced a decrease in earnings per share, which was 0.62 in Q1 and is now 0.61. Most recently, the company reported a dividend yield of 1.67%, which has decreased by 0.04% from last quarter's yield of 1.71%.

This quarter, Capstead Mortgage experienced a decrease in earnings per share, which was 0.13 in Q1 and is now 0.09. Most recently, the company reported a dividend yield of 8.8%, which has decreased by 0.92% from last quarter's yield of 9.72%.

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.

Posted In: BZI-VSNews