What is 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:
- Marcus & Millichap (NYSE:MMI) - P/E: 7.73
- Diversified Healthcare (NASDAQ:DHC) - P/E: 0.58
- Arbor Realty Trust (NYSE:ABR) - P/E: 5.64
- AFC Gamma (NASDAQ:AFCG) - P/E: 7.46
- Jones Lang LaSalle (NYSE:JLL) - P/E: 7.78
Marcus & Millichap has reported Q2 earnings per share at $1.04, which has increased by 28.4% compared to Q1, which was 0.81. Diversified Healthcare has reported Q2 earnings per share at $-0.04, which has increased by 55.56% compared to Q1, which was -0.09. The company's most recent dividend yield sits at 2.34%, which has increased by 0.95% from 1.39% last quarter.
Most recently, Arbor Realty Trust reported earnings per share at $0.52, whereas in Q1 earnings per share sat at $0.55. Most recently, the company reported a dividend yield of 9.5%, which has increased by 0.7% from last quarter's yield of 8.8%.
AFC Gamma's earnings per share for Q2 sits at $0.69, whereas in Q1, they were at 0.62. Its most recent dividend yield is at 12.9%, which has decreased by 1.18% from 14.08% in the previous quarter.
Jones Lang LaSalle's earnings per share for Q2 sits at $4.48, whereas in Q1, they were at 3.47. Most recently, the company reported a dividend yield of 1.08%, which has increased by 0.51% from last quarter's yield of 0.57%.
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.