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.
Benzinga Insights has compiled a list of value stocks in the real estate sector that may be worth watching:
- Annaly Capital Management NLY - P/E: 4.47
- Newmark Group NMRK - P/E: 5.55
- Invesco Mortgage Capital IVR - P/E: 4.27
- Ashford Hospitality Trust AHT - P/E: 0.17
- Realogy Holdings RLGY - P/E: 6.65
Annaly Capital Management's earnings per share for Q3 sits at 0.28, whereas in Q2, they were at 0.3. Most recently, the company reported a dividend yield of 10.33%, which has increased by 1.07% from last quarter's yield of 9.26%.
This quarter, Newmark Group experienced an increase in earnings per share, which was 0.31 in Q2 and is now 0.5. Its most recent dividend yield is at 0.26%, which has decreased by 0.06% from 0.32% in the previous quarter.
Invesco Mortgage Capital looks to be undervalued. It possesses an EPS of 0.1, which has not changed since last quarter (Q2). The company's most recent dividend yield sits at 11.32%, which has increased by 2.32% from 9.0% last quarter.
Most recently, Ashford Hospitality Trust reported earnings per share at 0.11, whereas in Q2 earnings per share sat at 0.84. The company's most recent dividend yield sits at 8.86%, which has increased by 1.86% from 7.0% last quarter.
Realogy Holdings saw a decrease in earnings per share from 1.33 in Q2 to 0.99 now. The company's most recent dividend yield sits at 7.0%, which has increased by 4.0% from 3.0% last 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.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.