What are 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.
The following stocks are considered to be notable value stocks in the real estate sector:
- New York Mortgage Trust (NASDAQ:NYMT) - P/E: 9.05
- Ready Capital (NYSE:RC) - P/E: 6.79
- Apollo Comml Real Est (NYSE:ARI) - P/E: 9.18
- Amrep (NYSE:AXR) - P/E: 9.17
- Forestar Group (NYSE:FOR) - P/E: 6.21
This quarter, New York Mortgage Trust experienced a decrease in earnings per share, which was $0.1 in Q3 and is now $0.06. 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%.
Ready Capital's earnings per share for Q4 sits at $0.67, whereas in Q3, they were at 0.64. Most recently, the company reported a dividend yield of 11.05%, which has increased by 0.5% from last quarter's yield of 10.55%.
Apollo Comml Real Est's earnings per share for Q4 sits at $0.32, whereas in Q3, they were at 0.35. The company's most recent dividend yield sits at 10.42%, which has decreased by 0.28% from 10.7% last quarter.
Amrep saw a decrease in earnings per share from 0.45 in Q2 to $0.12 now. This quarter, Forestar Group experienced a decrease in earnings per share, which was $0.85 in Q4 and is now $0.81.
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.
