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Should Value Investors Buy Braemar Hotels & Resorts (BHR) Stock?
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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.
One stock to keep an eye on is Braemar Hotels & Resorts (BHR - Free Report) . BHR is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
We should also highlight that BHR has a P/B ratio of 0.77. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.81. Over the past year, BHR's P/B has been as high as 1.10 and as low as 0.66, with a median of 0.87.
Finally, our model also underscores that BHR has a P/CF ratio of 5.25. 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 12.44. Over the past 52 weeks, BHR's P/CF has been as high as 15.19 and as low as 4.71, with a median of 7.25.
The Necessity Retail REIT may be another strong REIT and Equity Trust - Other stock to add to your shortlist. RTL is a # 2 (Buy) stock with a Value grade of A.
Shares of The Necessity Retail REIT currently holds a Forward P/E ratio of 5.06, and its PEG ratio is 0.84. In comparison, its industry sports average P/E and PEG ratios of 13.71 and 1.56.
Over the last 12 months, RTL's P/E has been as high as 9.42, as low as 4.65, with a median of 6.82, and its PEG ratio has been as high as 1.57, as low as 0.77, with a median of 1.13.
The Necessity Retail REIT also has a P/B ratio of 0.49 compared to its industry's price-to-book ratio of 1.81. Over the past year, its P/B ratio has been as high as 0.68, as low as 0.45, with a median of 0.59.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Braemar Hotels & Resorts and The Necessity Retail REIT are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BHR and RTL feels like a great value stock at the moment.
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Should Value Investors Buy Braemar Hotels & Resorts (BHR) Stock?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.
One stock to keep an eye on is Braemar Hotels & Resorts (BHR - Free Report) . BHR is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
We should also highlight that BHR has a P/B ratio of 0.77. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.81. Over the past year, BHR's P/B has been as high as 1.10 and as low as 0.66, with a median of 0.87.
Finally, our model also underscores that BHR has a P/CF ratio of 5.25. 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 12.44. Over the past 52 weeks, BHR's P/CF has been as high as 15.19 and as low as 4.71, with a median of 7.25.
The Necessity Retail REIT may be another strong REIT and Equity Trust - Other stock to add to your shortlist. RTL is a # 2 (Buy) stock with a Value grade of A.
Shares of The Necessity Retail REIT currently holds a Forward P/E ratio of 5.06, and its PEG ratio is 0.84. In comparison, its industry sports average P/E and PEG ratios of 13.71 and 1.56.
Over the last 12 months, RTL's P/E has been as high as 9.42, as low as 4.65, with a median of 6.82, and its PEG ratio has been as high as 1.57, as low as 0.77, with a median of 1.13.
The Necessity Retail REIT also has a P/B ratio of 0.49 compared to its industry's price-to-book ratio of 1.81. Over the past year, its P/B ratio has been as high as 0.68, as low as 0.45, with a median of 0.59.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Braemar Hotels & Resorts and The Necessity Retail REIT are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BHR and RTL feels like a great value stock at the moment.