5 Value Stocks To Watch In The Real Estate Sector

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.

Below is a list of notable value stocks in the real estate sector:

1. Dynex Cap DX - P/E: 1.26
2. Ellington Residential EARN - P/E: 4.22
3. Brandywine Realty Trust BDN - P/E: 8.24
4. Comstock Mining LODE - P/E: 5.96
5. PennyMac Mortgage PMT - P/E: 2.88

Dynex Cap's earnings per share for Q1 sits at 0.46, whereas in Q4, they were at 0.45. The company's most recent dividend yield sits at 8.31%, which has increased by 0.21% from 8.1% last quarter.

Ellington Residential saw a decrease in earnings per share from 0.34 in Q4 to 0.31 now. Its most recent dividend yield is at 9.0%, which has decreased by 0.11% from 9.11% in the previous quarter.

Most recently, Brandywine Realty Trust reported earnings per share at 0.35, whereas in Q4 earnings per share sat at 0.36. Most recently, the company reported a dividend yield of 5.58%, which has decreased by 0.66% from last quarter's yield of 6.24%.

Comstock Mining saw an increase in earnings per share from -0.14 in Q4 to 0.22 now. Comstock Mining does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

PennyMac Mortgage's earnings per share for Q1 sits at 0.67, whereas in Q4, they were at 0.78. Most recently, the company reported a dividend yield of 9.8%, which has decreased by 0.77% from last quarter's yield of 10.57%.

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.