5 Value Stocks To Watch In The Real Estate Sector

The Meaning Behind 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.

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

1. Amrep AXR - P/E: 2.76
2. Transcontinental Realty TCI - P/E: 0.7
3. Ready Capital RC - P/E: 8.5
4. Comstock Holding Co CHCI - P/E: 4.6
5. Ladder Cap LADR - P/E: 9.06

Most recently, Amrep reported earnings per share at $3.12, whereas in Q2 earnings per share sat at $0.68. Transcontinental Realty saw a decrease in earnings per share from 6.82 in Q4 to $0.41 now. Most recently, Ready Capital reported earnings per share at $0.3, whereas in Q4 earnings per share sat at $0.4. This quarter, Comstock Holding Co experienced a decrease in earnings per share, which was $0.13 in Q4 and is now $0.07. Ladder Cap saw an increase in earnings per share from 0.31 in Q4 to $0.38 now. The company's most recent dividend yield sits at 9.55%, which has increased by 0.76% from 8.79% 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.