Market Overview

Overview Of Value Stocks In The Real Estate Sector

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The Meaning Behind Value Stocks

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:

 

  1. Great Ajax (NYSE: AJX) - P/E: 6.94
  2. NexPoint Residential (NYSE: NXRT) - P/E: 6.65
  3. Vornado Realty (NYSE: VNO) - P/E: 2.29
  4. Manhattan Bridge Capital (NASDAQ: LOAN) - P/E: 9.13
  5. Simon Property Group (NYSE: SPG) - P/E: 9.38

Great Ajax’s earnings per share for Q1 sits at 0.02, whereas in Q4, they were at 0.31. Most recently, the company reported a dividend yield of 8.12%, which has decreased by 0.83% from last quarter’s yield of 8.95%.

Most recently, NexPoint Residential reported earnings per share at 0.53, whereas in Q4 earnings per share sat at 0.54. The company’s most recent dividend yield sits at 4.14%, which has increased by 1.74% from 2.4% last quarter.

Most recently, Vornado Realty reported earnings per share at 0.72, whereas in Q4 earnings per share sat at 0.89. Most recently, the company reported a dividend yield of 6.35%, which has increased by 2.41% from last quarter’s yield of 3.94%.

Manhattan Bridge Capital has been featured as a value stock. Manhattan Bridge Capital's Q2 EPS sits at 0.11, which has not changed since last quarter (Q1). Its most recent dividend yield is at 9.78%, which has increased by 2.84% from 6.94% in the previous quarter.

This quarter, Simon Property Group experienced a decrease in earnings per share, which was 3.29 in Q4 and is now 2.78. The company’s most recent dividend yield sits at 8.4%, which has increased by 2.07% from 6.33% 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.

 

Related Articles (LOAN + AJX)

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Posted-In: Earnings News Penny Stocks Dividends Real Estate

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