A Look Into Real Estate Sector Value Stocks

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:

1. Ladder Cap (NYSE:LADR) - P/E: 7.96
2. Transcontinental Realty (NYSE:TCI) - P/E: 0.94
3. Chicago Atlantic Real (NASDAQ:REFI) - P/E: 7.14
4. Amrep (NYSE:AXR) - P/E: 2.35
5. Two Harbors Inv (NYSE:TWO) - P/E: 6.43

Ladder Cap's earnings per share for Q4 sits at $0.31, whereas in Q3, they were at 0.27. Most recently, the company reported a dividend yield of 9.55%, which has increased by 0.76% from last quarter's yield of 8.79%.

Transcontinental Realty saw an increase in earnings per share from 1.91 in Q2 to $43.79 now. Chicago Atlantic Real has reported Q4 earnings per share at $0.57, which has decreased by 1.72% compared to Q3, which was 0.58. Amrep has reported Q3 earnings per share at $3.12, which has increased by 358.82% compared to Q2, which was 0.68. This quarter, Two Harbors Inv experienced an increase in earnings per share, which was $0.64 in Q3 and is now $0.73. The company's most recent dividend yield sits at 15.04%, which has increased by 0.87% from 14.17% 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.