What Defines 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.

Below is a list of notable value stocks in the real estate sector:

1. Tremont Mortgage TRMT - P/E: 4.43
2. Equity Commonwealth EQC - P/E: 7.17
3. CoreCivic CXW - P/E: 7.38
4. GEO Gr GEO - P/E: 8.37
5. Piedmont Office Realty PDM - P/E: 5.53

Tremont Mortgage’s earnings per share for Q3 sits at 0.33, whereas in Q2, they were at 0.3. The company’s most recent dividend yield sits at 1.42%, which has increased by 0.01% from 1.41% last quarter.

Equity Commonwealth has been featured as a value stock. Equity Commonwealth's Q3 EPS sits at 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.

Most recently, CoreCivic reported earnings per share at 0.52, whereas in Q2 earnings per share sat at 0.56. 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%.

GEO Gr’s earnings per share for Q3 sits at 0.52, whereas in Q2, they were at 0.51. Its most recent dividend yield is at 12.02%, which has decreased by 5.0% from 17.02% in the previous quarter.

Piedmont Office Realty’s earnings per share for Q3 sits at 0.48, whereas in Q2, they were 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.

These 5 value stocks were selected by Benzinga Insights based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.