5 Value Stocks In The Real Estate Sector

Understanding 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:

1. Forestar Group FOR - P/E: 4.18
2. Sachem Cap SACH - P/E: 8.0
3. Transcontinental Realty TCI - P/E: 0.92
4. Universal Health Realty UHT - P/E: 6.92
5. Seven Hills Realty Trust SEVN - P/E: 3.03

This quarter, Forestar Group experienced an increase in earnings per share, which was $0.8 in Q3 and is now $1.02. Sachem Cap has reported Q3 earnings per share at $0.13, which has decreased by 18.75% compared to Q2, which was 0.16. The company's most recent dividend yield sits at 13.58%, which has increased by 0.5% from 13.08% last quarter.

Transcontinental Realty's earnings per share for Q3 sits at $43.79, whereas in Q2, they were at 1.91. Universal Health Realty saw a decrease in earnings per share from 0.38 in Q2 to $0.35 now. The company's most recent dividend yield sits at 5.52%, which has decreased by 0.21% from 5.73% last quarter.

Seven Hills Realty Trust's earnings per share for Q3 sits at $0.27, whereas in Q2, they were at 0.24. Most recently, the company reported a dividend yield of 10.79%, which has increased by 1.59% from last quarter's yield of 9.2%.

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.