A Look Into Real Estate Sector Value Stocks

What are Value Stocks?

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. Chicago Atlantic Real REFI - P/E: 7.37
2. Hersha Hospitality HT - P/E: 3.18
3. AFC Gamma AFCG - P/E: 6.43
4. American Realty Investors ARL - P/E: 0.68
5. Seven Hills Realty Trust SEVN - P/E: 6.59

This quarter, Chicago Atlantic Real experienced a decrease in earnings per share, which was $0.62 in Q1 and is now $0.55. Its most recent dividend yield is at 12.34%, which has increased by 0.17% from 12.17% in the previous quarter.

Most recently, Hersha Hospitality reported earnings per share at $0.38, whereas in Q1 earnings per share sat at $0.02. The company's most recent dividend yield sits at 2.03%, which has decreased by 1.25% from 3.28% last quarter.

AFC Gamma's earnings per share for Q2 sits at $0.49, whereas in Q1, they were at 0.57. Its most recent dividend yield is at 15.15%, which has decreased by 0.11% from 15.26% in the previous quarter.

This quarter, American Realty Investors experienced a decrease in earnings per share, which was $0.18 in Q1 and is now $0.11. Seven Hills Realty Trust's earnings per share for Q2 sits at $0.37, whereas in Q1, they were at 0.39. Most recently, the company reported a dividend yield of 13.12%, which has decreased by 0.12% from last quarter's yield of 13.24%.

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.