What is 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.
Below is a list of notable value stocks in the real estate sector:
- Ready Capital RC - P/E: 6.61
- GEO Group GEO - P/E: 7.48
- New York Mortgage Trust NYMT - P/E: 6.35
- Ashford Hospitality Trust AHT - P/E: 0.01
- Kennedy-Wilson Holdings KW - P/E: 8.44
This quarter, Ready Capital experienced an increase in earnings per share, which was 0.41 in Q1 and is now 0.52. Ready Capital does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
GEO Group has reported Q2 earnings per share at 0.58, which has increased by 31.82% compared to Q1, which was 0.44. Most recently, the company reported a dividend yield of 11.16%, which has decreased by 0.86% from last quarter's yield of 12.02%.
New York Mortgage Trust looks to be undervalued. It possesses an EPS of 0.11, which has not changed since last quarter (Q1). The company's most recent dividend yield sits at 8.44%, which has decreased by 0.1% from 8.54% last quarter.
Ashford Hospitality Trust saw an increase in earnings per share from -0.3 in Q1 to 0.84 now. Its most recent dividend yield is at 8.86%, which has increased by 1.86% from 7.0% in the previous quarter.
Most recently, Kennedy-Wilson Holdings reported earnings per share at 1.53, whereas in Q1 earnings per share sat at -0.04. Most recently, the company reported a dividend yield of 4.34%, which has increased by 0.11% from last quarter's yield of 4.23%.
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.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.