5 Value Stocks To Watch In The Real Estate Sector

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.

The following stocks are considered to be notable value stocks in the real estate sector:

1. Chicago Atlantic Real REFI - P/E: 7.84
2. Five Point Holdings FPH - P/E: 4.04
3. AFC Gamma AFCG - P/E: 7.39
4. Franklin BSP Realty Trust FBRT - P/E: 9.21
5. Apartment Income REIT AIRC - P/E: 5.32

Chicago Atlantic Real's earnings per share for Q3 sits at $0.57, whereas in Q2, they were at 0.55. Five Point Holdings has reported Q4 earnings per share at $0.39, which has increased by 333.33% compared to Q3, which was 0.09. 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%.

Franklin BSP Realty Trust has reported Q3 earnings per share at $0.43, which has decreased by 34.85% compared to Q2, which was 0.66. The company's most recent dividend yield sits at 10.04%, which has increased by 0.04% from 10.0% last quarter.

Most recently, Apartment Income REIT reported earnings per share at $0.64, whereas in Q2 earnings per share sat at $0.58. Most recently, the company reported a dividend yield of 6.27%, which has increased by 1.3% from last quarter's yield of 4.97%.

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.