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Is Braemar Hotels & Resorts (BHR) Stock Undervalued Right Now?

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Braemar Hotels & Resorts (BHR - Free Report) is a stock many investors are watching right now. BHR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 7.98 right now. For comparison, its industry sports an average P/E of 16.23. Over the last 12 months, BHR's Forward P/E has been as high as 7.98 and as low as 5.34, with a median of 6.65.

Investors will also notice that BHR has a PEG ratio of 1.33. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BHR's industry has an average PEG of 2.90 right now. Over the past 52 weeks, BHR's PEG has been as high as 1.33 and as low as 0.91, with a median of 1.11.

We should also highlight that BHR has a P/B ratio of 1.02. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.45. BHR's P/B has been as high as 1.02 and as low as 0.73, with a median of 0.91, over the past year.

These are just a handful of the figures considered in Braemar Hotels & Resorts's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BHR is an impressive value stock right now.


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