Are Investors Undervaluing Summit Hotel Properties (INN) Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Summit Hotel Properties (INN). INN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 7.24, while its industry has an average P/E of 17. INN's Forward P/E has been as high as 9.71 and as low as 6.04, with a median of 7.03, all within the past year.
Finally, investors should note that INN has a P/CF ratio of 5.78. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. INN's P/CF compares to its industry's average P/CF of 16.92. Over the past 52 weeks, INN's P/CF has been as high as 5.85 and as low as 3.83, with a median of 4.69.
These are only a few of the key metrics included in Summit Hotel Properties'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, INN looks like an impressive value stock at the moment.
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Summit Hotel Properties, Inc. (INN) : Free Stock Analysis Report