Overview Of Value Stocks In The Real Estate Sector

What Defines 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.

Below is a list of notable value stocks in the real estate sector:

1. Forestar Group FOR - P/E: 7.15
2. AG Mortgage Investment MITT - P/E: 0.78
3. Nam Tai Property NTP - P/E: 6.2
4. Granite Point Mortgage GPMT - P/E: 7.54
5. Newmark Group NMRK - P/E: 4.74

Forestar Group saw a decrease in earnings per share from 0.85 in Q4 to $0.81 now. AG Mortgage Investment has reported Q4 earnings per share at $-0.05, which has decreased by 105.21% compared to Q3, which was 0.96. The company's most recent dividend yield sits at 8.07%, which has increased by 0.02% from 8.05% last quarter.

Most recently, Nam Tai Property reported earnings per share at $-0.11, whereas in Q2 earnings per share sat at $-0.01. The company's most recent dividend yield sits at 2.26%, which has decreased by 0.06% from 2.32% last quarter.

Granite Point Mortgage has reported Q4 earnings per share at $0.24, which has increased by 166.67% compared to Q3, which was 0.09. Most recently, the company reported a dividend yield of 8.64%, which has increased by 1.08% from last quarter's yield of 7.56%.

This quarter, Newmark Group experienced an increase in earnings per share, which was $0.5 in Q3 and is now $0.65. Its most recent dividend yield is at 0.24%, which has decreased by 0.02% from 0.26% 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.