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Overview Of Value Stocks In The Real Estate Sector

The Meaning Behind 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.

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

  1. Apollo Comml Real Est NYSE:ARI - P/E: 6.53
  2. Universal Health Realty NYSE:UHT - P/E: 7.37
  3. Alset NASDAQ:AEI - P/E: 0.67
  4. IRSA Inversiones y NYSE:IRS - P/E: 2.92
  5. American Realty Investors NYSE:ARL - P/E: 1.37

Apollo Comml Real Est's earnings per share for Q3 sits at $0.37, whereas in Q2, they were at 0.35. Its most recent dividend yield is at 12.01%, which has decreased by 0.04% from 12.05% in the previous quarter.

Universal Health Realty's earnings per share for Q3 sits at $0.35, whereas in Q2, they were at 0.38. Its most recent dividend yield is at 5.52%, which has decreased by 0.21% from 5.73% in the previous quarter.

Most recently, Alset reported earnings per share at $-1.6, whereas in Q2 earnings per share sat at $-1.4. This quarter, IRSA Inversiones y experienced a decrease in earnings per share, which was $0.21 in Q4 and is now $0.01. This quarter, American Realty Investors experienced an increase in earnings per share, which was $1.01 in Q2 and is now $18.72.

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.

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