What is a Value Stock?
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:
- Redwood Trust RWT - P/E: 4.12
- Newmark Group NMRK - P/E: 5.06
- Comstock Holding Co CHCI - P/E: 3.59
- Cedar Realty Trust CDR - P/E: 6.53
- Brandywine Realty Trust BDN - P/E: 7.63
This quarter, Redwood Trust experienced a decrease in earnings per share, which was 0.72 in Q1 and is now 0.66. The company's most recent dividend yield sits at 6.85%, which has increased by 0.84% from 6.01% last quarter.
Newmark Group has reported Q2 earnings per share at 0.31, which has increased by 55.0% compared to Q1, which was 0.2. Most recently, the company reported a dividend yield of 0.32%, which has decreased by 0.05% from last quarter's yield of 0.37%.
Comstock Holding Co saw an increase in earnings per share from 0.03 in Q1 to 1.29 now. Comstock Holding Co does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Cedar Realty Trust has reported Q2 earnings per share at 0.61, which has decreased by 1.61% compared to Q1, which was 0.62. The company's most recent dividend yield sits at 1.67%, which has decreased by 0.04% from 1.71% last quarter.
Brandywine Realty Trust's earnings per share for Q2 sits at 0.32, whereas in Q1, they were at 0.35. Its most recent dividend yield is at 5.64%, which has increased by 0.06% from 5.58% 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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