5 Value Stocks In The Real Estate Sector

What are Value Stocks?

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.

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

1. Broadmark Realty Capital BRMK - P/E: 9.62
2. Apartment Income REIT AIRC - P/E: 5.94
3. Universal Health Realty UHT - P/E: 6.55
4. Landsea Homes LSEA - P/E: 3.03
5. Sachem Cap SACH - P/E: 8.64

Broadmark Realty Capital's earnings per share for Q3 sits at $0.12, whereas in Q2, they were at 0.16. Its most recent dividend yield is at 8.22%, which has decreased by 7.81% from 16.03% in the previous quarter.

Apartment Income REIT's earnings per share for Q3 sits at $0.58, whereas in Q2, they were at 0.66. Most recently, the company reported a dividend yield of 4.68%, which has increased by 0.5% from last quarter's yield of 4.18%.

Most recently, Universal Health Realty reported earnings per share at $0.35, whereas in Q2 earnings per share sat at $0.38. The company's most recent dividend yield sits at 5.73%, which has increased by 0.33% from 5.4% last quarter.

Most recently, Landsea Homes reported earnings per share at $0.69, whereas in Q2 earnings per share sat at $0.71. Sachem Cap saw a decrease in earnings per share from 0.16 in Q2 to $0.13 now. Most recently, the company reported a dividend yield of 13.58%, which has increased by 0.5% from last quarter's yield of 13.08%.

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.