Are Investors Undervaluing Ashford Hospitality Trust (AHT) Right Now?

AHT CLPR

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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Ashford Hospitality Trust (AHT - Free Report) . AHT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 13.38 right now. For comparison, its industry sports an average P/E of 14.28. Over the past 52 weeks, AHT's Forward P/E has been as high as 13.38 and as low as 2.26, with a median of 4.12.

Finally, our model also underscores that AHT has a P/CF ratio of 5. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.24. Within the past 12 months, AHT's P/CF has been as high as 5 and as low as 1.32, with a median of 2.37.

Investors could also keep in mind Clipper Realty (CLPR - Free Report) , an REIT and Equity Trust - Other stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Clipper Realty sports a P/B ratio of 4.48 as well; this compares to its industry's price-to-book ratio of 1.63. In the past 52 weeks, CLPR's P/B has been as high as 5.49, as low as 2.22, with a median of 3.02.

These are just a handful of the figures considered in Ashford Hospitality Trust and Clipper Realty'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 AHT and CLPR is an impressive value stock right now.

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