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:
- American Realty Investors ARL - P/E: 5.69
- Apartment Income REIT AIRC - P/E: 6.95
- TPG RE Finance Trust TRTX - P/E: 9.99
- Medical Properties Trust MPW - P/E: 7.49
- Cushman & Wakefield CWK - P/E: 9.79
This quarter, American Realty Investors experienced an increase in earnings per share, which was $0.6 in Q1 and is now $1.01. Apartment Income REIT's earnings per share for Q2 sits at $0.66, whereas in Q1, they were at 0.57. Its most recent dividend yield is at 4.18%, which has increased by 0.78% from 3.4% in the previous quarter.
This quarter, TPG RE Finance Trust experienced a decrease in earnings per share, which was $0.33 in Q1 and is now $0.27. The company's most recent dividend yield sits at 9.33%, which has increased by 1.11% from 8.22% last quarter.
Medical Properties Trust saw a decrease in earnings per share from 0.47 in Q1 to $0.46 now. The company's most recent dividend yield sits at 7.03%, which has increased by 0.84% from 6.19% last quarter.
Cushman & Wakefield has reported Q2 earnings per share at $0.63, which has increased by 31.25% compared to Q1, which was 0.48.
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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