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Is Park Hotels & Resorts (PK) Stock Undervalued Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Park Hotels & Resorts (PK - Free Report) is a stock many investors are watching right now. PK is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 6.63. This compares to its industry's average Forward P/E of 14.84. Over the past 52 weeks, PK's Forward P/E has been as high as 11.98 and as low as 5.81, with a median of 7.13.

Investors should also recognize that PK has a P/B ratio of 0.69. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. PK's current P/B looks attractive when compared to its industry's average P/B of 1.50. Over the past 12 months, PK's P/B has been as high as 1.06 and as low as 0.58, with a median of 0.69.

Finally, investors should note that PK has a P/CF ratio of 5.62. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.78. Over the past 52 weeks, PK's P/CF has been as high as 16.19 and as low as -123.53, with a median of 7.48.

If you're looking for another solid REIT and Equity Trust - Other value stock, take a look at Service Properties Trust (SVC - Free Report) . SVC is a # 2 (Buy) stock with a Value score of A.

Additionally, Service Properties Trust has a P/B ratio of 0.97 while its industry's price-to-book ratio sits at 1.50. For SVC, this valuation metric has been as high as 1.35, as low as 0.56, with a median of 0.86 over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Park Hotels & Resorts and Service Properties Trust are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PK and SVC feels like a great value stock at the moment.


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