Value of value shares
Share prices have traditionally been defined in terms of how market investors assess the prospects for a company’s future growth. Low P / E ratios are good basic indicators that a company is undervalued and likely to be categorized as a value stock.
Benzinga Insights has compiled a list of real estate securities worth looking out for:
- Newmark Group (NASDAQ:NMRK) – P / E: 4.96
- KKR Real Estate Finance (NYSE:KREF) – P / E: 9.67
- Ares Commercial Real (NYSE:ACRE) – P / E: 8.55
- PennyMac Mortgage (NYSE:SUE) – P / E: 6.98
- Arbor realty trust (NYSE:ABR) – P / E: 6.82
Newmark Group reported Q2 earnings per share of 0.31, up 55.0% from a 0.2 quarter. Most recently, the company reported a 0.32% dividend yield, down 0.05% from a 0.37% yield last quarter.
This quarter, KKR Real Estate Finance’s earnings per share fell from 0.55 in the first quarter to 0.54. Its latest dividend yield is 7.52%, down 1.46% from the previous quarter.
Ares Commercial Real’s earnings per share in the second quarter were 0.37, while it was at 0.4 in the first quarter. Ares Commercial Real does not have a dividend yield that investors should be aware of when considering owning such shares.
Most recently, PennyMac Mortgage reported earnings per share of 0.32 compared to 0.67 earnings per share in the first quarter. Its latest dividend yield is 8.98%, down 0.82% from 9.8% in the previous quarter.
Arbor Realty Trust’s earnings per share in the second quarter were 0.45, compared to 0.52 in the first quarter. Its latest dividend yield is 7.73%, down 0.15% from 7.88% in the previous quarter.
Meaning: It may take some time for a value stock to rebound from an undervalued position. The risk of investing in securities is that this appearance may never materialize.