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Should Value Investors Buy Pebblebrook Hotel Trust (PEB) Stock?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 company to watch right now is Pebblebrook Hotel Trust (PEB - Free Report) . PEB is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 6.95, which compares to its industry's average of 15.47. Over the past year, PEB's Forward P/E has been as high as 8.94 and as low as 4.77, with a median of 7.48.

PEB is also sporting a PEG ratio of 1.49. 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. PEB's industry has an average PEG of 2.00 right now. Over the past 52 weeks, PEB's PEG has been as high as 2.03 and as low as 0.50, with a median of 0.58.

Finally, investors will want to recognize that PEB has a P/CF ratio of 5.41. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.86. PEB's P/CF has been as high as 13.87 and as low as 3.92, with a median of 6.19, all within the past year.

These are only a few of the key metrics included in Pebblebrook Hotel Trust'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, PEB looks like an impressive value stock at the moment.


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