Overview Of Value Stocks In The Real Estate Sector

Author: Benzinga Insights | July 17, 2023 10:39am

What Defines a Value Stock?

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.

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

1. Forestar Group (NYSE:FOR) - P/E: 8.65
2. Transcontinental Realty (NYSE:TCI) - P/E: 0.66
3. Seven Hills Realty Trust (NASDAQ:SEVN) - P/E: 6.53
4. Amrep (NYSE:AXR) - P/E: 3.37
5. Ladder Cap (NYSE:LADR) - P/E: 9.64

Forestar Group has reported Q2 earnings per share at $0.54, which has increased by 28.57% compared to Q1, which was 0.42. This quarter, Transcontinental Realty experienced a decrease in earnings per share, which was $6.82 in Q4 and is now $0.41. Most recently, Seven Hills Realty Trust reported earnings per share at $0.39, whereas in Q4 earnings per share sat at $0.37. Most recently, the company reported a dividend yield of 13.24%, which has decreased by 0.79% from last quarter's yield of 14.03%.

This quarter, Amrep experienced an increase in earnings per share, which was $0.68 in Q2 and is now $3.12. Ladder Cap's earnings per share for Q1 sits at $0.38, whereas in Q4, they were at 0.31. Most recently, the company reported a dividend yield of 8.7%, which has decreased by 0.85% from last quarter's yield of 9.55%.

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.

Posted In: AXR FOR LADR SEVN TCI