Benzinga | Oct 4, 2021 11:49AM EDT

A Look Into Real Estate Sector Value Stocks

What are Value Stocks?

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.

Below is a list of notable value stocks in the real estate sector:

2 Ares Commercial Real (NYSE:ACRE) - P/E: 8.68

4 Annaly Capital Management (NYSE:NLY) - P/E: 3.73

6 Redwood Trust (NYSE:RWT) - P/E: 4.27

8 ARMOUR Residential REIT (NYSE:ARR) - P/E: 4.86

10 IRSA Propiedades (NASDAQ:IRCP) - P/E: 1.81

Ares Commercial Real saw a decrease in earnings per share from 0.4 in Q1 to 0.37 now. Ares Commercial Real does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Annaly Capital Management saw an increase in earnings per share from 0.29 in Q1 to 0.3 now. The company's most recent dividend yield sits at 10.33%, which has increased by 1.07% from 9.26% last quarter.

Redwood Trust has reported Q2 earnings per share at 0.66, which has decreased by 8.33% compared to Q1, which was 0.72. The company's most recent dividend yield sits at 6.85%, which has increased by 0.84% from 6.01% last quarter.

This quarter, ARMOUR Residential REIT experienced a decrease in earnings per share, which was 0.23 in Q1 and is now 0.21. The company's most recent dividend yield sits at 10.99%, which has decreased by 0.65% from 11.64% last quarter.

IRSA Propiedades saw a decrease in earnings per share from -0.1 in Q3 to -0.34 now. IRSA Propiedades does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

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.