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Is Summit Hotel Properties (INN) a Great Value Stock Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Summit Hotel Properties (INN - Free Report) . INN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 6.09. This compares to its industry's average Forward P/E of 14.66. Over the past year, INN's Forward P/E has been as high as 9.71 and as low as 6.09, with a median of 7.11.
Finally, investors will want to recognize that INN has a P/CF ratio of 4.09. 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. INN's current P/CF looks attractive when compared to its industry's average P/CF of 14.41. Over the past year, INN's P/CF has been as high as 5 and as low as 3.75, with a median of 4.41.
Investors could also keep in mind Park Hotels & Resorts (PK - Free Report) , an REIT and Equity Trust - Other stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Park Hotels & Resorts is trading at a forward earnings multiple of 6.44 at the moment, with a PEG ratio of 0.66. This compares to its industry's average P/E of 14.66 and average PEG ratio of 2.01.
PK's Forward P/E has been as high as 8.49 and as low as 5.78, with a median of 7.12. During the same time period, its PEG ratio has been as high as 0.95, as low as 0.49, with a median of 0.73.
Furthermore, Park Hotels & Resorts holds a P/B ratio of 0.81 and its industry's price-to-book ratio is 1.70. PK's P/B has been as high as 1, as low as 0.59, with a median of 0.84 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 Summit Hotel Properties and Park Hotels & Resorts are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, INN and PK feels like a great value stock at the moment.
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Is Summit Hotel Properties (INN) a Great Value Stock Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Summit Hotel Properties (INN - Free Report) . INN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 6.09. This compares to its industry's average Forward P/E of 14.66. Over the past year, INN's Forward P/E has been as high as 9.71 and as low as 6.09, with a median of 7.11.
Finally, investors will want to recognize that INN has a P/CF ratio of 4.09. 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. INN's current P/CF looks attractive when compared to its industry's average P/CF of 14.41. Over the past year, INN's P/CF has been as high as 5 and as low as 3.75, with a median of 4.41.
Investors could also keep in mind Park Hotels & Resorts (PK - Free Report) , an REIT and Equity Trust - Other stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Park Hotels & Resorts is trading at a forward earnings multiple of 6.44 at the moment, with a PEG ratio of 0.66. This compares to its industry's average P/E of 14.66 and average PEG ratio of 2.01.
PK's Forward P/E has been as high as 8.49 and as low as 5.78, with a median of 7.12. During the same time period, its PEG ratio has been as high as 0.95, as low as 0.49, with a median of 0.73.
Furthermore, Park Hotels & Resorts holds a P/B ratio of 0.81 and its industry's price-to-book ratio is 1.70. PK's P/B has been as high as 1, as low as 0.59, with a median of 0.84 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 Summit Hotel Properties and Park Hotels & Resorts are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, INN and PK feels like a great value stock at the moment.