5 Value Stocks To Watch In The Real Estate Sector

What is 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.

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

1. Tricon Residential TCN - P/E: 4.07
2. Dynex Cap DX - P/E: 3.72
3. Ladder Cap LADR - P/E: 8.19
4. AFC Gamma AFCG - P/E: 6.64
5. Cherry Hill Mortgage CHMI - P/E: 9.13

Tricon Residential has reported Q4 earnings per share at $0.31, which has increased by 106.67% compared to Q3, which was 0.15. Most recently, the company reported a dividend yield of 2.82%, which has decreased by 0.01% from last quarter's yield of 2.83%.

Dynex Cap has reported Q1 earnings per share at $-0.16, which has decreased by 633.33% compared to Q4, which was 0.03. The company's most recent dividend yield sits at 13.09%, which has increased by 0.06% from 13.03% last quarter.

Ladder Cap has reported Q4 earnings per share at $0.31, which has increased by 14.81% compared to Q3, which was 0.27. The company's most recent dividend yield sits at 9.55%, which has increased by 0.76% from 8.79% last quarter.

AFC Gamma's earnings per share for Q4 sits at $0.62, whereas in Q3, they were at 0.59. Its most recent dividend yield is at 14.37%, which has increased by 0.69% from 13.68% in the previous quarter.

Cherry Hill Mortgage has reported Q4 earnings per share at $0.24, which has decreased by 7.69% compared to Q3, which was 0.26. Its most recent dividend yield is at 20.26%, which has increased by 1.7% from 18.56% 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.