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.
Benzinga Insights has compiled a list of value stocks in the real estate sector that may be worth watching:
- Brandywine Realty Trust (NYSE:BDN) - P/E: 7.19
- Ellington Residential (NYSE:EARN) - P/E: 7.53
- Tremont Mortgage (NASDAQ:TRMT) - P/E: 5.33
- Comstock Mining (AMEX:LODE) - P/E: 9.49
- GEO Group (NYSE:GEO) - P/E: 6.03
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.
Ellington Residential's earnings per share for Q4 sits at 0.34, whereas in Q3, they were at 0.39. Its most recent dividend yield is at 9.0%, which has decreased by 0.11% from 9.11% in the previous quarter.
Tremont Mortgage has reported Q4 earnings per share at 0.28, which has decreased by 15.15% compared to Q3, which was 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, GEO Group reported earnings per share at 0.48, whereas in Q3 earnings per share sat at 0.52. The company's most recent dividend yield sits at 11.16%, which has decreased by 0.86% from 12.02% last quarter.
See also: Get Started in Real Estate Investing
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.