What are Value Stocks?
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.
Below is a list of notable value stocks in the real estate sector:
- Equity Commonwealth EQC - P/E: 7.71
- SL Green Realty SLG - P/E: 6.54
- CoreCivic CXW - P/E: 6.84
- Brandywine Realty Trust BDN - P/E: 6.29
- GEO Gr GEO - P/E: 7.71
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.
SL Green Realty has reported Q4 earnings per share at 1.56, which has decreased by 10.86% compared to Q3, which was 1.75. SL Green Realty 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. The company's most recent dividend yield sits at 10.5%, which has decreased by 1.16% from 11.66% last quarter.
Brandywine Realty Trust's earnings per share for Q3 sits at 0.35, whereas in Q2, they were at 0.34. Most recently, the company reported a dividend yield of 6.48%, which has decreased by 0.58% from last quarter's yield of 7.06%.
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 11.16%, which has decreased by 0.86% from 12.02% in the previous 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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