5 Value Stocks In The Real Estate Sector

The Meaning Behind 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.

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

1. Tremont Mortgage TRMT - P/E: 5.85
2. Comstock Mining LODE - P/E: 8.08
3. Brandywine Realty Trust BDN - P/E: 7.44
4. Equity Commonwealth EQC - P/E: 8.03
5. Ellington Residential EARN - P/E: 7.45

Tremont Mortgage's earnings per share for Q4 sits at 0.28, whereas in Q3, they were at 0.33. Tremont Mortgage does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Comstock Mining experienced a decrease in earnings per share, which was -0.03 in Q3 and is now -0.14. Comstock Mining does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Brandywine Realty Trust reported earnings per share at 0.36, whereas in Q3 earnings per share sat at 0.35. Its most recent dividend yield is at 6.24%, which has decreased by 0.24% from 6.48% in the previous quarter.

This quarter, Equity Commonwealth experienced a decrease in earnings per share, which was 0.03 in Q3 and is now 0.0. Equity Commonwealth does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Ellington Residential saw a decrease in earnings per share from 0.39 in Q3 to 0.34 now. Most recently, the company reported a dividend yield of 9.0%, which has decreased by 0.11% from last quarter's yield of 9.11%.

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.