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.
Benzinga Insights has compiled a list of value stocks in the real estate sector that may be worth watching:
- AGNC Investment AGNC - P/E: 4.66
- PotlatchDeltic PCH - P/E: 7.24
- Realogy Holdings RLGY - P/E: 7.26
- Kennedy-Wilson Holdings KW - P/E: 8.52
- Dynex Cap DX - P/E: 3.19
AGNC Investment looks to be undervalued. It possesses an EPS of 0.76, which has not changed since last quarter (Q1). Most recently, the company reported a dividend yield of 8.99%, which has increased by 0.14% from last quarter's yield of 8.85%.
PotlatchDeltic saw an increase in earnings per share from 1.94 in Q1 to 2.77 now. Its most recent dividend yield is at 3.16%, which has increased by 0.43% from 2.73% in the previous quarter.
Realogy Holdings's earnings per share for Q2 sits at 1.33, whereas in Q1, they were at 0.34. The company's most recent dividend yield sits at 7.0%, which has increased by 4.0% from 3.0% last quarter.
Kennedy-Wilson Holdings's earnings per share for Q2 sits at 1.53, whereas in Q1, they were at -0.04. The company's most recent dividend yield sits at 4.34%, which has increased by 0.11% from 4.23% last quarter.
Dynex Cap saw an increase in earnings per share from 0.46 in Q1 to 0.51 now. Most recently, the company reported a dividend yield of 8.92%, which has increased by 0.06% from last quarter's yield of 8.86%.
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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