What Defines 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:
- Tricon Residential TCN - P/E: 5.53
- American Realty Investors ARL - P/E: 0.97
- Chicago Atlantic Real REFI - P/E: 7.6
- IRSA Inversiones y IRS - P/E: 4.39
- Ladder Cap LADR - P/E: 8.89
Tricon Residential's earnings per share for Q1 sits at $0.14, whereas in Q4, they were at 0.31. Its most recent dividend yield is at 2.86%, which has increased by 0.04% from 2.82% in the previous quarter.
American Realty Investors has reported Q1 earnings per share at $0.18, which has decreased by 93.31% compared to Q4, which was 2.69. Most recently, Chicago Atlantic Real reported earnings per share at $0.62, whereas in Q4 earnings per share sat at $0.57. Its most recent dividend yield is at 12.17%, which has decreased by 2.2% from 14.37% in the previous quarter.
IRSA Inversiones y has reported Q3 earnings per share at $0.92, which has increased by 91900.0% compared to Q2, which was 0.0. This quarter, Ladder Cap experienced an increase in earnings per share, which was $0.31 in Q4 and is now $0.38. Its most recent dividend yield is at 8.7%, which has decreased by 0.85% from 9.55% 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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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