The Meaning of Value Stocks

A value stock traditionally has a lower price than stocks of companies in the same industry. This indicates that the company may be undervalued because investors are not showing as much interest in these companies. The most common way to check value is through the price/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:

  1. Forestar Group FOR – PER: 5.13
  2. Marcus & Millichap IMM – PER: 9.31
  3. Arbor Realty Trust ABR – PER: 6.49
  4. SL Green Realty SLG – PER: 7.02
  5. CatchMark Timber Trust CTT – PER: 8.05

Earnings per share for Forestar Group for the second quarter came in at $0.96, while in the first quarter it was 0.81. This quarter, Marcus & Millichap saw lower earnings per share, which was $1.53 in Q4 and is now $0.81. Most recently, Arbor Realty Trust reported earnings per share of $0.55, while fourth quarter earnings per share were $0.57. Most recently, the company announced a dividend yield of 8.8%, down 0.05% from last quarter’s 8.85% yield.

SL Green Realty reported first-quarter earnings per share of $1.65, up 8.55% from the fourth quarter, which was $1.52. Its most recent dividend yield is 7.61%, up 1.9% from 5.71% in the prior quarter.

CatchMark Timber Trust saw its earnings per share fall from 0.7 in the fourth quarter to $0.07 now. Most recently, the company announced a dividend yield of 3.67%, up 0.01% from last quarter’s 3.66% yield.

These 5 value stocks were selected by Glimpses of Benzinga based on a numerical analysis. Although this methodical judgment process is not intended to make final decisions, our technology can give investors additional insight into the sector.