A value stock has a lower price when compared to the stock prices of companies in the same industry. The company may be undervalued as investors are not expressing interest in such companies, and this indicates that the company may be undervalued. The price-to earnings multiple, or P E, is the most commonly used way to check for value. 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:
The City Office REIT looks to be undervalued. It has an EPS of $0.4, which has not changed since Q 1 Its most recent dividend yield is at 7.09%, which has increased by 0.25% from 6.84% in the previous quarter.
Stratus Properties' earnings per share for Q 2 is $0.09, whereas in Q 1 they were at 0.23. Forestar Group reported Q 3 earnings per share at $0.8, which has decreased by 16.67% compared to Q 2, which was 0.96. In Q1 earnings per share, American Realty Investors reported earnings per share at $1.01, while earnings per share was $0.6. The earnings per share decreased in Arbor Realty Trust, which was $0.55 in Q 1 and is now $0.52. The dividend yield was 9.5% last quarter, which has increased by 0.7% from the previous quarter's yield of 8.8%.
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 happen.