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Mon. 16 May 2022, 10:39am ET Benzinga News

Understanding 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. Lument Finance Trust (NYSE:LFT) - P/E: 8.7
  2. City Office REIT (NYSE:CIO) - P/E: 1.28
  3. Green Giant (NASDAQ:GGE) - P/E: 7.46
  4. Redwood Trust (NYSE:RWT) - P/E: 5.25
  5. NexPoint Real Estate (NYSE:NREF) - P/E: 6.92

Lument Finance Trust has reported Q1 earnings per share at $0.05, which has decreased by 54.55% compared to Q4, which was 0.11. Its most recent dividend yield is at 7.92%, which has decreased by 1.78% from 9.7% in the previous quarter.

City Office REIT has reported Q1 earnings per share at $0.4, which has increased by 11.11% compared to Q4, which was 0.36. Most recently, the company reported a dividend yield of 4.72%, which has increased by 0.23% from last quarter's yield of 4.49%.

Green Giant looks to be undervalued. It possesses an EPS of $0.01, which has not changed since last quarter (Q4). Redwood Trust saw a decrease in earnings per share from 0.34 in Q4 to $0.24 now. Its most recent dividend yield is at 8.54%, which has increased by 1.62% from 6.92% in the previous quarter.

NexPoint Real Estate's earnings per share for Q1 sits at $1.23, whereas in Q4, they were at 0.54. Most recently, the company reported a dividend yield of 8.78%, which has decreased by 0.78% from last quarter's yield of 9.56%.

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.