Market Overview

Overview Of Value Stocks In The Real Estate Sector

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What are 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. GEO Gr (NYSE: GEO) - P/E: 7.2
  2. Hunt Cos Finance Trust (NYSE: HCFT) - P/E: 9.25
  3. Weingarten Realty (NYSE: WRI) - P/E: 8.3
  4. Ellington Residential (NYSE: EARN) - P/E: 7.33
  5. Equity Commonwealth (NYSE: EQC) - P/E: 7.14

GEO Gr saw an increase in earnings per share from 0.51 in Q2 to 0.52 now. Most recently, the company reported a dividend yield of 12.02%, which has decreased by 5.0% from last quarter’s yield of 17.02%.

Hunt Cos Finance Trust looks to be undervalued. It possesses an EPS of 0.09, which has not changed since last quarter (Q1). Its most recent dividend yield is at 14.35%, which has increased by 2.94% from 11.41% in the previous quarter.

Weingarten Realty’s earnings per share for Q3 sits at 0.44, whereas in Q2, they were at 0.34. Most recently, the company reported a dividend yield of 4.23%, which has increased by 0.05% from last quarter’s yield of 4.18%.

This quarter, Ellington Residential experienced a decrease in earnings per share, which was 0.27 in Q1 and is now 0.26. The company’s most recent dividend yield sits at 9.81%, which has decreased by 0.71% from 10.52% last quarter.

Equity Commonwealth looks to be undervalued. It possesses an EPS of 0.03, which has not changed since last quarter (Q2). Equity Commonwealth does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

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 Penny Stocks Dividends Small Cap Real Estate