5 Value Stocks In The Real Estate Sector
What are Value Stocks?
A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued.
Benzinga Insights has compiled a list of value stocks in the real estate sector that may be worth watching:
- Stratus Properties (NASDAQ:STRS) - P/E: 2.78
- Medical Properties Trust (NYSE:MPW) - P/E: 5.86
- Sotherly Hotels (NASDAQ:SOHO) - P/E: 1.61
- BRT Apartments (NYSE:BRT) - P/E: 7.1
- Annaly Capital Management (NYSE:NLY) - P/E: 4.69
Stratus Properties saw a decrease in earnings per share from 0.09 in Q2 to $-0.29 now. Most recently, Medical Properties Trust reported earnings per share at $0.43, whereas in Q3 earnings per share sat at $0.45. The company's most recent dividend yield sits at 8.84%, which has decreased by 1.48% from 10.32% last quarter.
Most recently, Sotherly Hotels reported earnings per share at $0.41, whereas in Q3 earnings per share sat at $0.12. Its most recent dividend yield is at 8.14%, which has increased by 0.14% from 8.0% in the previous quarter.
Most recently, BRT Apartments reported earnings per share at $0.38, whereas in Q2 earnings per share sat at $0.37. The company's most recent dividend yield sits at 5.04%, which has increased by 0.67% from 4.37% last quarter.
Annaly Capital Management saw a decrease in earnings per share from 1.06 in Q3 to $0.89 now. Most recently, the company reported a dividend yield of 16.52%, which has increased by 3.17% from last quarter's yield of 13.35%.
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.