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.
Mortgage REITs operate quite differently than the equity REITs most people are familiar with. Instead of investing in income-producing properties, mortgage REITs invest in loans secured by real estate.