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Should Value Investors Buy Hospitality Properites (HPT) Stock?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 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 stock to keep an eye on is Hospitality Properites . HPT is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.68. This compares to its industry's average Forward P/E of 15.14. HPT's Forward P/E has been as high as 7.77 and as low as 5.74, with a median of 7.06, all within the past year.

Investors should also note that HPT holds a PEG ratio of 1.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HPT's PEG compares to its industry's average PEG of 2.70. HPT's PEG has been as high as 1.55 and as low as 1.15, with a median of 1.41, all within the past year.

We should also highlight that HPT has a P/B ratio of 1.52. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.28. Within the past 52 weeks, HPT's P/B has been as high as 1.76 and as low as 1.33, with a median of 1.61.

Finally, investors should note that HPT has a P/CF ratio of 5.77. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.49. Over the past 52 weeks, HPT's P/CF has been as high as 7.96 and as low as 5.06, with a median of 6.70.

These are only a few of the key metrics included in Hospitality Properites'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, HPT looks like an impressive value stock at the moment.

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