NXRT or ESS: Which Is the Better Value Stock Right Now?

Core Insights - The article compares NexPoint Residential Trust Inc. (NXRT) and Essex Property Trust (ESS) to determine which stock is undervalued for investors in the REIT and Equity Trust - Residential sector [1] Valuation Metrics - NXRT has a forward P/E ratio of 10.23, significantly lower than ESS's forward P/E of 18.06 [5] - NXRT's PEG ratio is 1.71, while ESS's PEG ratio is much higher at 6.00, indicating NXRT may be undervalued relative to its expected earnings growth [5] - NXRT's P/B ratio stands at 2.23 compared to ESS's P/B of 3.22, further suggesting NXRT's stock may be more attractively priced [6] Zacks Rank and Value Grades - NXRT holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while ESS has a Zacks Rank of 3 (Hold) [3] - NXRT has a Value grade of B, whereas ESS has a Value grade of D, highlighting NXRT's stronger valuation metrics [6][7]