5 Value Stocks To Watch In The Real Estate Sector

The Meaning Behind Value Stocks

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.

Benzinga Insights has compiled a list of value stocks in the real estate sector that may be worth watching:

1. Apollo Comml Real Est ARI - P/E: 6.98
2. Two Harbors Investment TWO - P/E: 7.95
3. Apartment Income REIT AIRC - P/E: 6.71
4. Comstock Holding Co CHCI - P/E: 5.01
5. Diversified Healthcare DHC - P/E: 0.38

Apollo Comml Real Est's earnings per share for Q4 sits at $0.31, whereas in Q3, they were at 0.37. The company's most recent dividend yield sits at 12.01%, which has decreased by 0.04% from 12.05% last quarter.

This quarter, Two Harbors Investment experienced an increase in earnings per share, which was $0.64 in Q3 and is now $0.73. The company's most recent dividend yield sits at 15.04%, which has increased by 0.87% from 14.17% last quarter.

This quarter, Apartment Income REIT experienced an increase in earnings per share, which was $0.58 in Q3 and is now $0.59. The company's most recent dividend yield sits at 4.7%, which has increased by 0.02% from 4.68% last quarter.

Comstock Holding Co saw an increase in earnings per share from 0.3 in Q2 to $0.37 now. This quarter, Diversified Healthcare experienced a decrease in earnings per share, which was $-0.04 in Q2 and is now $-0.06. The company's most recent dividend yield sits at 4.74%, which has increased by 0.62% from 4.12% last 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.