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Is Piedmont Office Realty Trust (PDM) a Great Value Stock Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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.

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 stock to keep an eye on is Piedmont Office Realty Trust (PDM - Free Report) . PDM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PDM has a P/S ratio of 1.48. This compares to its industry's average P/S of 3.92.

Finally, investors will want to recognize that PDM has a P/CF ratio of 4.57. 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. PDM's P/CF compares to its industry's average P/CF of 14.60. Over the past 52 weeks, PDM's P/CF has been as high as 5.12 and as low as 2.21, with a median of 2.77.

Investors could also keep in mind Xenia Hotels & Resorts (XHR - Free Report) , an REIT and Equity Trust - Other stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Xenia Hotels & Resorts sports a P/B ratio of 1.01 as well; this compares to its industry's price-to-book ratio of 1.70. In the past 52 weeks, XHR's P/B has been as high as 1.16, as low as 0.85, with a median of 0.98.

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


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Piedmont Office Realty Trust, Inc. (PDM) - free report >>

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