Overview Of Value Stocks 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.

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

1. AFC Gamma AFCG - P/E: 7.22
2. American Realty Investors ARL - P/E: 4.81
3. Ready Capital RC - P/E: 4.26
4. Rithm Capital RITM - P/E: 7.02
5. Franklin BSP Realty Trust FBRT - P/E: 8.86

AFC Gamma looks to be undervalued. It possesses an EPS of $0.49, which has not changed since last quarter (Q2). Most recently, the company reported a dividend yield of 15.15%, which has decreased by 0.11% from last quarter's yield of 15.26%.

American Realty Investors's earnings per share for Q3 sits at $0.18, whereas in Q2, they were at 0.11. Ready Capital saw a decrease in earnings per share from 0.35 in Q2 to $0.28 now. Most recently, the company reported a dividend yield of 13.04%, which has increased by 7.59% from last quarter's yield of 5.45%.

Most recently, Rithm Capital reported earnings per share at $0.58, whereas in Q2 earnings per share sat at $0.62. The company's most recent dividend yield sits at 10.05%, which has decreased by 0.77% from 10.82% last quarter.

Franklin BSP Realty Trust has reported Q3 earnings per share at $0.43, which has decreased by 34.85% compared to Q2, which was 0.66. The company's most recent dividend yield sits at 10.0%, which has increased by 0.1% from 9.9% 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.