Overview Of Value Stocks In The Real Estate Sector

Author: Benzinga Insights | July 24, 2023 10:39am

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:

1. Sotherly Hotels (NASDAQ:SOHO) - P/E: 1.57
2. Transcontinental Realty (NYSE:TCI) - P/E: 0.66
3. AFC Gamma (NASDAQ:AFCG) - P/E: 7.27
4. Seven Hills Realty Trust (NASDAQ:SEVN) - P/E: 6.34
5. Chicago Atlantic Real (NASDAQ:REFI) - P/E: 7.6

Sotherly Hotels's earnings per share for Q1 sits at $0.24, whereas in Q4, they were at 0.41. Most recently, the company reported a dividend yield of 8.14%, which has increased by 0.14% from last quarter's yield of 8.0%.

Transcontinental Realty has reported Q1 earnings per share at $0.41, which has decreased by 93.99% compared to Q4, which was 6.82. AFC Gamma saw a decrease in earnings per share from 0.62 in Q4 to $0.57 now. Most recently, the company reported a dividend yield of 15.26%, which has increased by 0.89% from last quarter's yield of 14.37%.

Seven Hills Realty Trust's earnings per share for Q1 sits at $0.39, whereas in Q4, they were at 0.37. Its most recent dividend yield is at 13.24%, which has decreased by 0.79% from 14.03% in the previous quarter.

Chicago Atlantic Real has reported Q1 earnings per share at $0.62, which has increased by 8.77% compared to Q4, which was 0.57. Most recently, the company reported a dividend yield of 12.17%, which has decreased by 2.2% from last quarter's yield of 14.37%.

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: AFCG REFI SEVN SOHO TCI