5 Value Stocks To Watch In The Real Estate Sector

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:

1. AGNC Investment AGNC - P/E: 4.67
2. Invesco Mortgage Capital IVR - P/E: 2.06
3. Dynex Cap DX - P/E: 3.26
4. Western Asset Mortgage WMC - P/E: 2.27
5. New Residential Inv NRZ - P/E: 9.13

AGNC Investment has been featured as a value stock. AGNC Investment's Q2 EPS sits at 0.76, which has not changed since last quarter (Q1). The company's most recent dividend yield sits at 9.03%, which has increased by 0.04% from 8.99% last quarter.

This quarter, Invesco Mortgage Capital experienced a decrease in earnings per share, which was 0.11 in Q1 and is now 0.1. Most recently, the company reported a dividend yield of 11.32%, which has increased by 2.32% from last quarter's yield of 9.0%.

Dynex Cap's earnings per share for Q2 sits at 0.51, whereas in Q1, they were at 0.46. The company's most recent dividend yield sits at 8.83%, which has decreased by 0.09% from 8.92% last quarter.

This quarter, Western Asset Mortgage experienced a decrease in earnings per share, which was 0.1 in Q1 and is now 0.05. Most recently, the company reported a dividend yield of 9.49%, which has increased by 2.88% from last quarter's yield of 6.61%.

This quarter, New Residential Inv experienced a decrease in earnings per share, which was 0.34 in Q1 and is now 0.31. Most recently, the company reported a dividend yield of 10.31%, which has increased by 3.0% from last quarter's yield of 7.31%.

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.