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.

The following stocks are considered to be notable value stocks in the real estate sector:

  1. Brandywine Realty Trust (NYSE: BDN) - P/E: 6.28
  2. Piedmont Office Realty (NYSE: PDM) - P/E: 5.41
  3. CoreCivic (NYSE: CXW) - P/E: 6.54
  4. Tremont Mortgage (NASDAQ: TRMT) - P/E: 4.34
  5. Kimco Realty (NYSE: KIM) - P/E: 7.4

Most recently, Brandywine Realty Trust reported earnings per share at 0.35, whereas in Q2 earnings per share sat at 0.34. Its most recent dividend yield is at 7.06%, which has decreased by 1.3% from 8.36% in the previous quarter.

Most recently, Piedmont Office Realty reported earnings per share at 0.48, whereas in Q2 earnings per share sat at 0.49. The company’s most recent dividend yield sits at 6.92%, which has increased by 1.68% from 5.24% last quarter.

This quarter, CoreCivic experienced a decrease in earnings per share, which was 0.56 in Q2 and is now 0.52. Most recently, the company reported a dividend yield of 10.5%, which has decreased by 1.16% from last quarter’s yield of 11.66%.

This quarter, Tremont Mortgage experienced an increase in earnings per share, which was 0.3 in Q2 and is now 0.33. The company’s most recent dividend yield sits at 1.42%, which has increased by 0.01% from 1.41% last quarter.

Kimco Realty has reported Q3 earnings per share at 0.25, which has increased by 4.17% compared to Q2, which was 0.24. The company’s most recent dividend yield sits at 4.4%, which has increased by 1.06% from 3.34% 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 Penny Stocks Dividends Small Cap Real Estate