The Meaning Behind Value Stocks
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:
- ARMOUR Residential REIT ARR - P/E: 4.87
- Ares Commercial Real ACRE - P/E: 8.62
- New Residential Inv NRZ - P/E: 8.94
- Newmark Group NMRK - P/E: 5.35
- PotlatchDeltic PCH - P/E: 7.03
ARMOUR Residential REIT has reported Q2 earnings per share at 0.21, which has decreased by 8.7% compared to Q1, which was 0.23. The company's most recent dividend yield sits at 10.99%, which has decreased by 0.65% from 11.64% last quarter.
Ares Commercial Real's earnings per share for Q2 sits at 0.37, whereas in Q1, they were at 0.4. Ares Commercial Real does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
New Residential Inv's earnings per share for Q2 sits at 0.31, whereas in Q1, they were at 0.34. The company's most recent dividend yield sits at 10.31%, which has increased by 3.0% from 7.31% 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. The company's most recent dividend yield sits at 0.32%, which has decreased by 0.05% from 0.37% last quarter.
PotlatchDeltic has reported Q2 earnings per share at 2.77, which has increased by 42.78% compared to Q1, which was 1.94. Most recently, the company reported a dividend yield of 3.16%, which has increased by 0.43% from last quarter's yield of 2.73%.
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.