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PEB or EGP: Which Is the Better Value Stock Right Now?
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Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Pebblebrook Hotel (PEB - Free Report) and EastGroup Properties (EGP - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, both Pebblebrook Hotel and EastGroup Properties are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
PEB currently has a forward P/E ratio of 10.62, while EGP has a forward P/E of 21.56. We also note that PEB has a PEG ratio of 0.76. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EGP currently has a PEG ratio of 2.84.
Another notable valuation metric for PEB is its P/B ratio of 0.69. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, EGP has a P/B of 3.18.
These metrics, and several others, help PEB earn a Value grade of B, while EGP has been given a Value grade of F.
Both PEB and EGP are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PEB is the superior value option right now.
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PEB or EGP: Which Is the Better Value Stock Right Now?
Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Pebblebrook Hotel (PEB - Free Report) and EastGroup Properties (EGP - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, both Pebblebrook Hotel and EastGroup Properties are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
PEB currently has a forward P/E ratio of 10.62, while EGP has a forward P/E of 21.56. We also note that PEB has a PEG ratio of 0.76. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EGP currently has a PEG ratio of 2.84.
Another notable valuation metric for PEB is its P/B ratio of 0.69. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, EGP has a P/B of 3.18.
These metrics, and several others, help PEB earn a Value grade of B, while EGP has been given a Value grade of F.
Both PEB and EGP are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PEB is the superior value option right now.