Back to top

Image: Bigstock

Should Value Investors Buy Pebblebrook Hotel Trust (PEB) Stock?

Read MoreHide Full Article

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Pebblebrook Hotel Trust (PEB - Free Report) . PEB is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 8.45, which compares to its industry's average of 15.64. Over the past year, PEB's Forward P/E has been as high as 11.11 and as low as 7.63, with a median of 9.22.

Finally, investors should note that PEB has a P/CF ratio of 13.30. 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 15.43. Over the past year, PEB's P/CF has been as high as 13.71 and as low as 7.85, with a median of 10.17.

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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Pebblebrook Hotel Trust (PEB) - free report >>

Published in