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Are Investors Undervaluing Playa Hotels & Resorts (PLYA) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Playa Hotels & Resorts (PLYA - Free Report) . PLYA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PLYA has a P/S ratio of 1.83. This compares to its industry's average P/S of 2.78.

Finally, investors will want to recognize that PLYA has a P/CF ratio of 10.57. 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. PLYA's current P/CF looks attractive when compared to its industry's average P/CF of 21.23. Over the past year, PLYA's P/CF has been as high as 10.57 and as low as 6.53, with a median of 8.04.

These are just a handful of the figures considered in Playa Hotels & Resorts's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PLYA is an impressive value stock right now.


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