5 Value Stocks In The Real Estate Sector
What is a Value Stock?
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:
- Lument Finance Trust (NYSE:LFT) - P/E: 9.7
- AFC Gamma (NASDAQ:AFCG) - P/E: 7.32
- Ready Capital (NYSE:RC) - P/E: 3.94
- Arbor Realty Trust (NYSE:ABR) - P/E: 7.41
- Corporacion Inmobiliaria (NYSE:VTMX) - P/E: 9.64
Most recently, Lument Finance Trust reported earnings per share at $0.11, whereas in Q2 earnings per share sat at $0.04. The company's most recent dividend yield sits at 12.84%, which has decreased by 0.49% from 13.33% last quarter.
AFC Gamma has been featured as a value stock. AFC Gamma's Q3 EPS sits at $0.49, which has not changed since last quarter (Q2). The company's most recent dividend yield sits at 15.82%, which has increased by 0.67% from 15.15% last quarter.
Ready Capital saw a decrease in earnings per share from 0.35 in Q2 to $0.28 now. The company's most recent dividend yield sits at 10.7%, which has decreased by 2.34% from 13.04% last quarter.
Arbor Realty Trust saw a decrease in earnings per share from 0.55 in Q3 to $0.51 now. Most recently, the company reported a dividend yield of 13.11%, which has decreased by 0.32% from last quarter's yield of 13.43%.
Most recently, Corporacion Inmobiliaria reported earnings per share at $0.0, whereas in Q2 earnings per share sat at $0.01.
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.