A Look Into Real Estate Sector Value Stocks

Author: Benzinga Insights | October 09, 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.

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

1. Rithm Capital (NYSE:RITM) - P/E: 6.94
2. Landsea Homes (NASDAQ:LSEA) - P/E: 6.39
3. RMR Gr (NASDAQ:RMR) - P/E: 6.46
4. Comstock Holding Co (NASDAQ:CHCI) - P/E: 7.2
5. Arbor Realty Trust (NYSE:ABR) - P/E: 7.95

This quarter, Rithm Capital experienced an increase in earnings per share, which was $0.35 in Q1 and is now $0.62. The company's most recent dividend yield sits at 10.05%, which has decreased by 0.77% from 10.82% last quarter.

Landsea Homes's earnings per share for Q2 sits at $0.33, whereas in Q1, they were at 0.18. This quarter, RMR Gr experienced a decrease in earnings per share, which was $0.49 in Q2 and is now $0.48. Most recently, the company reported a dividend yield of 6.64%, which has increased by 0.24% from last quarter's yield of 6.4%.

Most recently, Comstock Holding Co reported earnings per share at $0.05, whereas in Q1 earnings per share sat at $0.07. Most recently, Arbor Realty Trust reported earnings per share at $0.57, whereas in Q1 earnings per share sat at $0.62. Most recently, the company reported a dividend yield of 10.65%, which has decreased by 4.75% from last quarter's yield of 15.4%.

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: ABR CHCI LSEA RITM RMR