What is a Value Stock?
A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company's future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labelled as a value stock.
Benzinga Insights has compiled a list of value stocks in the real estate sector that may be worth watching:
- CoreCivic CXW - P/E: 6.3
- IRSA Propiedades IRCP - P/E: 0.91
- Comstock Holding Co CHCI - P/E: 7.2
- Kimco Realty KIM - P/E: 7.43
- GEO Gr GEO - P/E: 7.64
CoreCivic has reported Q3 earnings per share at 0.52, which has decreased by 7.14% compared to Q2, which was 0.56. The company's most recent dividend yield sits at 10.5%, which has decreased by 1.16% from 11.66% last quarter.
IRSA Propiedades's earnings per share for Q4 sits at 2.21, whereas in Q3, they were at -0.17. IRSA Propiedades does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Comstock Holding Co's earnings per share for Q3 sits at 0.05, whereas in Q2, they were at 0.14. Comstock Holding Co does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
This quarter, Kimco Realty experienced an increase in earnings per share, which was 0.24 in Q2 and is now 0.25. Its most recent dividend yield is at 4.4%, which has increased by 1.06% from 3.34% in the previous quarter.
GEO Gr's earnings per share for Q3 sits at 0.52, whereas in Q2, they were at 0.51. The company's most recent dividend yield sits at 12.02%, which has decreased by 5.0% from 17.02% 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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