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Are Investors Undervaluing Braemar Hotels & Resorts (BHR) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.
Braemar Hotels & Resorts (BHR - Free Report) is a stock many investors are watching right now. BHR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Investors should also recognize that BHR has a P/B ratio of 0.89. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. BHR's current P/B looks attractive when compared to its industry's average P/B of 2.39. Over the past 12 months, BHR's P/B has been as high as 1.10 and as low as 0.65, with a median of 0.82.
Finally, our model also underscores that BHR has a P/CF ratio of 6.58. 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. BHR's P/CF compares to its industry's average P/CF of 15.10. Within the past 12 months, BHR's P/CF has been as high as 27.39 and as low as 5.25, with a median of 8.12.
The Geo Group (GEO - Free Report) may be another strong REIT and Equity Trust - Other stock to add to your shortlist. GEO is a # 2 (Buy) stock with a Value grade of A.
The Geo Group is trading at a forward earnings multiple of 2.91 at the moment, with a PEG ratio of 0.29. This compares to its industry's average P/E of 17.21 and average PEG ratio of 2.37.
GEO's Forward P/E has been as high as 4.08 and as low as 2.46, with a median of 3.09. During the same time period, its PEG ratio has been as high as 0.41, as low as 0.25, with a median of 0.31.
Furthermore, The Geo Group holds a P/B ratio of 0.81 and its industry's price-to-book ratio is 2.39. GEO's P/B has been as high as 1.16, as low as 0.66, with a median of 0.86 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Braemar Hotels & Resorts and The Geo Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BHR and GEO feels like a great value stock at the moment.
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Are Investors Undervaluing Braemar Hotels & Resorts (BHR) 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 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.
Braemar Hotels & Resorts (BHR - Free Report) is a stock many investors are watching right now. BHR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Investors should also recognize that BHR has a P/B ratio of 0.89. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. BHR's current P/B looks attractive when compared to its industry's average P/B of 2.39. Over the past 12 months, BHR's P/B has been as high as 1.10 and as low as 0.65, with a median of 0.82.
Finally, our model also underscores that BHR has a P/CF ratio of 6.58. 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. BHR's P/CF compares to its industry's average P/CF of 15.10. Within the past 12 months, BHR's P/CF has been as high as 27.39 and as low as 5.25, with a median of 8.12.
The Geo Group (GEO - Free Report) may be another strong REIT and Equity Trust - Other stock to add to your shortlist. GEO is a # 2 (Buy) stock with a Value grade of A.
The Geo Group is trading at a forward earnings multiple of 2.91 at the moment, with a PEG ratio of 0.29. This compares to its industry's average P/E of 17.21 and average PEG ratio of 2.37.
GEO's Forward P/E has been as high as 4.08 and as low as 2.46, with a median of 3.09. During the same time period, its PEG ratio has been as high as 0.41, as low as 0.25, with a median of 0.31.
Furthermore, The Geo Group holds a P/B ratio of 0.81 and its industry's price-to-book ratio is 2.39. GEO's P/B has been as high as 1.16, as low as 0.66, with a median of 0.86 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Braemar Hotels & Resorts and The Geo Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BHR and GEO feels like a great value stock at the moment.