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Playa Hotels & Resorts (PLYA) Stock Sinks As Market Gains: What You Should Know

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Playa Hotels & Resorts (PLYA - Free Report) closed the most recent trading day at $9.21, moving -0.43% from the previous trading session. This move lagged the S&P 500's daily gain of 0.12%. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq lost 4.09%.

Coming into today, shares of the developer and operator of all-inclusive resorts had gained 4.17% in the past month. In that same time, the Consumer Discretionary sector lost 0.58%, while the S&P 500 gained 3.98%.

Playa Hotels & Resorts will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.12, down 20% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $236.86 million, up 7.04% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.59 per share and revenue of $944.55 million, which would represent changes of +18% and +10.31%, respectively, from the prior year.

Any recent changes to analyst estimates for Playa Hotels & Resorts should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 2.91% higher within the past month. Playa Hotels & Resorts currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, Playa Hotels & Resorts is holding a Forward P/E ratio of 15.68. This represents a discount compared to its industry's average Forward P/E of 20.4.

Meanwhile, PLYA's PEG ratio is currently 4.57. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Hotels and Motels industry currently had an average PEG ratio of 1.76 as of yesterday's close.

The Hotels and Motels industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 32% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on

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