Overview Of Value Stocks In The Real Estate Sector

What is a Value Stock?

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.

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

1. Lument Finance Trust LFT - P/E: 9.1
2. Two Harbors Investment TWO - P/E: 5.06
3. TPG RE Finance Trust TRTX - P/E: 7.55
4. Tricon Residential TCN - P/E: 2.9
5. Altisource Portfolio ASPS - P/E: 7.62

Lument Finance Trust's earnings per share for Q2 sits at $0.04, whereas in Q1, they were at 0.05. Most recently, the company reported a dividend yield of 10.0%, which has decreased by 0.39% from last quarter's yield of 10.39%.

Two Harbors Investment saw an increase in earnings per share from 0.18 in Q1 to $0.22 now. Its most recent dividend yield is at 14.17%, which has decreased by 0.55% from 14.72% in the previous quarter.

TPG RE Finance Trust's earnings per share for Q2 sits at $0.27, whereas in Q1, they were at 0.33. Most recently, the company reported a dividend yield of 10.76%, which has increased by 1.43% from last quarter's yield of 9.33%.

Tricon Residential's earnings per share for Q2 sits at $0.16, whereas in Q1, they were at 0.14. The company's most recent dividend yield sits at 2.03%, which has increased by 0.16% from 1.87% last quarter.

Altisource Portfolio saw a decrease in earnings per share from -0.58 in Q1 to $-0.7 now.

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.