Overview Of Value Stocks In The Real Estate Sector
The Meaning Behind 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.
The following stocks are considered to be notable value stocks in the real estate sector:
- Transcontinental Realty (NYSE:TCI) - P/E: 4.95
- Forestar Group (NYSE:FOR) - P/E: 8.95
- AFC Gamma (NASDAQ:AFCG) - P/E: 7.03
- Chicago Atlantic Real (NASDAQ:REFI) - P/E: 8.0
- American Realty Investors (NYSE:ARL) - P/E: 7.07
This quarter, Transcontinental Realty experienced an increase in earnings per share, which was $0.06 in Q2 and is now $0.52. Forestar Group saw a decrease in earnings per share from 1.44 in Q4 to $0.76 now. AFC Gamma looks to be undervalued. It possesses an EPS of $0.49, which has not changed since last quarter (Q2). Most recently, the company reported a dividend yield of 15.82%, which has increased by 0.67% from last quarter's yield of 15.15%.
Chicago Atlantic Real's earnings per share for Q3 sits at $0.57, whereas in Q2, they were at 0.55. Most recently, American Realty Investors reported earnings per share at $0.18, whereas in Q2 earnings per share sat at $0.11.
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.