The Meaning Behind 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.
Benzinga Insights has compiled a list of value stocks in the real estate sector that may be worth watching:
- Nam Tai Property (NYSE:NTP) - P/E: 5.48
- New York Mortgage Trust (NASDAQ:NYMT) - P/E: 9.61
- New Residential Inv (NYSE:NRZ) - P/E: 7.18
- Tricon Residential (NYSE:TCN) - P/E: 6.82
- Amrep (NYSE:AXR) - P/E: 9.32
Nam Tai Property saw a decrease in earnings per share from -0.01 in Q2 to $-0.11 now. Most recently, the company reported a dividend yield of 2.26%, which has decreased by 0.06% from last quarter's yield of 2.32%.
New York Mortgage Trust saw a decrease in earnings per share from 0.1 in Q3 to $0.06 now. Most recently, the company reported a dividend yield of 10.87%, which has increased by 0.48% from last quarter's yield of 10.39%.
Most recently, New Residential Inv reported earnings per share at $0.4, whereas in Q3 earnings per share sat at $0.44. Its most recent dividend yield is at 9.33%, which has increased by 0.11% from 9.22% in the previous quarter.
Tricon Residential saw an increase in earnings per share from 0.14 in Q3 to $0.15 now. Amrep saw a decrease in earnings per share from 0.45 in Q2 to $0.12 now.
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.
