5 Value Stocks In The Real Estate Sector

What Defines a Value Stock?

A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued.

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

1. Weyerhaeuser WY - P/E: 9.9
2. Dynex Cap DX - P/E: 4.57
3. Power REIT PW - P/E: 7.71
4. Newmark Group NMRK - P/E: 6.82
5. Annaly Capital Management NLY - P/E: 2.43

Most recently, Weyerhaeuser reported earnings per share at $0.42, whereas in Q2 earnings per share sat at $1.06. Its most recent dividend yield is at 2.0%, which has increased by 0.09% from 1.91% in the previous quarter.

Dynex Cap saw a decrease in earnings per share from 0.4 in Q2 to $0.24 now. Its most recent dividend yield is at 13.43%, which has increased by 3.38% from 10.05% in the previous quarter.

Most recently, Power REIT reported earnings per share at $0.41, whereas in Q1 earnings per share sat at $0.4. This quarter, Newmark Group experienced a decrease in earnings per share, which was $0.46 in Q2 and is now $0.35. The company's most recent dividend yield sits at 1.28%, which has increased by 0.24% from 1.04% last quarter.

Most recently, Annaly Capital Management reported earnings per share at $1.06, whereas in Q2 earnings per share sat at $1.2. Its most recent dividend yield is at 13.35%, which has increased by 0.2% from 13.15% in the previous quarter.

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.