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Should Value Investors Buy Braemar Hotels & Resorts (BHR) Stock?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Braemar Hotels & Resorts (BHR - Free Report) . BHR is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 5.24 right now. For comparison, its industry sports an average P/E of 15.62. Over the last 12 months, BHR's Forward P/E has been as high as 7.43 and as low as 3.52, with a median of 5.36.

Another notable valuation metric for BHR is its P/B ratio of 0.68. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.78. BHR's P/B has been as high as 0.94 and as low as 0.53, with a median of 0.73, over the past year.

These are only a few of the key metrics included in Braemar Hotels & Resorts's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BHR looks like an impressive value stock at the moment.


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