Are Investors Undervaluing Pebblebrook Hotel Trust (PEB) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Pebblebrook Hotel Trust (PEB). PEB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 7.67 right now. For comparison, its industry sports an average P/E of 16.57. Over the past year, PEB's Forward P/E has been as high as 11.11 and as low as 7.27, with a median of 8.81.
Finally, our model also underscores that PEB has a P/CF ratio of 12.38. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. PEB's P/CF compares to its industry's average P/CF of 16.48. Within the past 12 months, PEB's P/CF has been as high as 13.87 and as low as 7.91, with a median of 10.75.
These are only a few of the key metrics included in Pebblebrook Hotel Trust's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PEB looks like an impressive value stock at the moment.
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Pebblebrook Hotel Trust (PEB) : Free Stock Analysis Report