5 Value Stocks In The Real Estate Sector

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.

Below is a list of notable value stocks in the real estate sector:

  1. Arbor Realty Trust ABR - P/E: 9.15
  2. Power REIT PW - P/E: 6.25
  3. Landsea Homes LSEA - P/E: 3.37
  4. Sachem Cap SACH - P/E: 8.59
  5. Cherry Hill Mortgage CHMI - P/E: 2.55

This quarter, Arbor Realty Trust experienced an increase in earnings per share, which was $0.56 in Q3 and is now $0.6. Its most recent dividend yield is at 10.75%, which has decreased by 1.41% from 12.16% in the previous quarter.

Power REIT saw a decrease in earnings per share from 0.41 in Q2 to $0.34 now. This quarter, Landsea Homes experienced a decrease in earnings per share, which was $0.71 in Q2 and is now $0.69. Sachem Cap's earnings per share for Q3 sits at $0.13, whereas in Q2, they were at 0.16. Most recently, the company reported a dividend yield of 15.07%, which has increased by 1.49% from last quarter's yield of 13.58%.

This quarter, Cherry Hill Mortgage experienced a decrease in earnings per share, which was $0.28 in Q2 and is now $0.26. The company's most recent dividend yield sits at 18.56%, which has increased by 1.53% from 17.03% 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.

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