A Look Into Real Estate Sector Value Stocks

The Meaning Behind 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. Annaly Capital Management NLY - P/E: 2.96
2. Equity Commonwealth EQC - P/E: 8.09
3. Brandywine Realty Trust BDN - P/E: 7.64
4. ARMOUR Residential REIT ARR - P/E: 2.82
5. Tremont Mortgage TRMT - P/E: 5.67

Annaly Capital Management has reported Q1 earnings per share at 0.29, which has decreased by 3.33% compared to Q4, which was 0.3. Its most recent dividend yield is at 10.1%, which has decreased by 0.5% from 10.6% in the previous quarter.

This quarter, Equity Commonwealth experienced a decrease in earnings per share, which was 0.03 in Q3 and is now 0.0. Equity Commonwealth does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Brandywine Realty Trust has reported Q1 earnings per share at 0.35, which has decreased by 2.78% compared to Q4, which was 0.36. Its most recent dividend yield is at 6.24%, which has decreased by 0.24% from 6.48% in the previous quarter.

ARMOUR Residential REIT's earnings per share for Q1 sits at 0.23, whereas in Q4, they were at 0.32. Most recently, the company reported a dividend yield of 9.91%, which has increased by 0.14% from last quarter's yield of 9.77%.

Most recently, Tremont Mortgage reported earnings per share at 0.27, whereas in Q4 earnings per share sat at 0.28. Tremont Mortgage does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

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.