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:
- Comstock Holding Co (NASDAQ:CHCI) – P/E: 4.07
- Great Ajax (NYSE:AJX) – P/E: 9.71
- PennyMac Mortgage (NYSE:PMT) – P/E: 7.23
- ARMOUR Residential REIT (NYSE:ARR) – P/E: 4.86
- IRSA Propiedades (NASDAQ:IRCP) – P/E: 1.75
This quarter, Comstock Holding Co experienced an increase in earnings per share, which was 0.03 in Q1 and is now 1.29. Comstock Holding Co does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Most recently, Great Ajax reported earnings per share at 0.42, whereas in Q1 earnings per share sat at 0.35….