We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should Value Investors Buy Playa Hotels & Resorts (PLYA) Stock?
Read MoreHide Full Article
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Playa Hotels & Resorts (PLYA - Free Report) . PLYA is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 18.58. This compares to its industry's average Forward P/E of 22.82. Over the last 12 months, PLYA's Forward P/E has been as high as 85.41 and as low as 9.13, with a median of 15.49.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PLYA has a P/S ratio of 1.7. This compares to its industry's average P/S of 2.32.
Finally, investors will want to recognize that PLYA has a P/CF ratio of 10.36. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 21.79. Over the past year, PLYA's P/CF has been as high as 14.73 and as low as -389.45, with a median of 7.65.
Value investors will likely look at more than just these metrics, but the above data helps show that Playa Hotels & Resorts is likely undervalued currently. And when considering the strength of its earnings outlook, PLYA sticks out at as one of the market's strongest value stocks.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should Value Investors Buy Playa Hotels & Resorts (PLYA) 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.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Playa Hotels & Resorts (PLYA - Free Report) . PLYA is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 18.58. This compares to its industry's average Forward P/E of 22.82. Over the last 12 months, PLYA's Forward P/E has been as high as 85.41 and as low as 9.13, with a median of 15.49.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PLYA has a P/S ratio of 1.7. This compares to its industry's average P/S of 2.32.
Finally, investors will want to recognize that PLYA has a P/CF ratio of 10.36. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 21.79. Over the past year, PLYA's P/CF has been as high as 14.73 and as low as -389.45, with a median of 7.65.
Value investors will likely look at more than just these metrics, but the above data helps show that Playa Hotels & Resorts is likely undervalued currently. And when considering the strength of its earnings outlook, PLYA sticks out at as one of the market's strongest value stocks.