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

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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.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

One company value investors might notice is Braemar Hotels & Resorts (BHR - Free Report) . BHR 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 6.23 right now. For comparison, its industry sports an average P/E of 17.57. Over the past 52 weeks, BHR's Forward P/E has been as high as 10.24 and as low as 4.91, with a median of 6.55.

Another valuation metric that we should highlight is BHR's P/B ratio of 0.83. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.43. Over the past 12 months, BHR's P/B has been as high as 1.10 and as low as 0.65, with a median of 0.86.

Finally, investors will want to recognize that BHR has a P/CF ratio of 6.67. 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. BHR's current P/CF looks attractive when compared to its industry's average P/CF of 15.30. Within the past 12 months, BHR's P/CF has been as high as 31.70 and as low as -9.41, with a median of 11.31.

Another great REIT and Equity Trust - Other stock you could consider is Empire State Realty Trust (ESRT - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Shares of Empire State Realty Trust are currently trading at a forward earnings multiple of 9.79 and a PEG ratio of 1.21 compared to its industry's P/E and PEG ratios of 17.57 and 2.39, respectively.


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Empire State Realty Trust, Inc. (ESRT) - free report >>

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