Market Overview

5 Value Stocks In The Real Estate Sector

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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:

  1. Kimco Realty (NYSE: KIM) - P/E: 4.88
  2. Lexington Realty (NYSE: LXP) - P/E: 9.86
  3. Great Ajax (NYSE: AJX) - P/E: 8.72
  4. RPT Realty (NYSE: RPT) - P/E: 6.19
  5. Weingarten Realty (NYSE: WRI) - P/E: 8.4

Most recently, Kimco Realty reported earnings per share at 0.24, whereas in Q1 earnings per share sat at 0.37. The company’s most recent dividend yield sits at 3.34%, which has decreased by 2.24% from 5.58% last quarter.

Lexington Realty looks to be undervalued. It possesses an EPS of 0.19, which has not changed since last quarter (Q1). Most recently, the company reported a dividend yield of 3.72%, which has decreased by 0.38% from last quarter’s yield of 4.1%.

Great Ajax has reported Q2 earnings per share at 0.27, which has increased by 1250.0% compared to Q1, which was 0.02. Most recently, the company reported a dividend yield of 7.8%, which has decreased by 0.32% from last quarter’s yield of 8.12%.

This quarter, RPT Realty experienced a decrease in earnings per share, which was 0.26 in Q1 and is now 0.16. Its most recent dividend yield is at 6.13%, which has decreased by 0.11% from 6.24% in the previous quarter.

This quarter, Weingarten Realty experienced a decrease in earnings per share, which was 0.44 in Q1 and is now 0.34. The company’s most recent dividend yield sits at 4.23%, which has increased by 0.05% from 4.18% 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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Posted-In: Earnings News Dividends