Overview Of Value Stocks In The Real Estate Sector

Author: Benzinga Insights | August 28, 2023 10:39am

What is 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.

The following stocks are considered to be notable value stocks in the real estate sector:

1. Five Point Holdings (NYSE:FPH) - P/E: 8.08
2. Comstock Holding Co (NASDAQ:CHCI) - P/E: 7.18
3. Forestar Group (NYSE:FOR) - P/E: 9.63
4. Amrep (NYSE:AXR) - P/E: 4.05
5. Sachem Cap (AMEX:SACH) - P/E: 7.69

Five Point Holdings has reported Q2 earnings per share at $0.34, which has increased by 585.71% compared to Q1, which was -0.07. This quarter, Comstock Holding Co experienced a decrease in earnings per share, which was $0.07 in Q1 and is now $0.05. Most recently, Forestar Group reported earnings per share at $0.93, whereas in Q2 earnings per share sat at $0.54. This quarter, Amrep experienced a decrease in earnings per share, which was $3.12 in Q3 and is now $-0.06. This quarter, Sachem Cap experienced an increase in earnings per share, which was $0.1 in Q1 and is now $0.11. Most recently, the company reported a dividend yield of 14.48%, which has increased by 0.15% from last quarter's yield of 14.33%.

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 CHCI FOR FPH SACH