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Should Value Investors Buy Apple Hospitality REIT (APLE) Stock?
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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Apple Hospitality REIT (APLE - Free Report) . APLE is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 8.28, which compares to its industry's average of 15.73. Over the last 12 months, APLE's Forward P/E has been as high as 9.93 and as low as 6.69, with a median of 8.77.
Another notable valuation metric for APLE is its P/B ratio of 0.91. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.79. Over the past 12 months, APLE's P/B has been as high as 1.19 and as low as 0.79, with a median of 1.04.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. APLE has a P/S ratio of 2.05. This compares to its industry's average P/S of 3.89.
Finally, our model also underscores that APLE has a P/CF ratio of 7.86. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.14. APLE's P/CF has been as high as 9.97 and as low as 6.68, with a median of 8.65, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Apple Hospitality REIT is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, APLE feels like a great value stock at the moment.
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Should Value Investors Buy Apple Hospitality REIT (APLE) Stock?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Apple Hospitality REIT (APLE - Free Report) . APLE is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 8.28, which compares to its industry's average of 15.73. Over the last 12 months, APLE's Forward P/E has been as high as 9.93 and as low as 6.69, with a median of 8.77.
Another notable valuation metric for APLE is its P/B ratio of 0.91. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.79. Over the past 12 months, APLE's P/B has been as high as 1.19 and as low as 0.79, with a median of 1.04.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. APLE has a P/S ratio of 2.05. This compares to its industry's average P/S of 3.89.
Finally, our model also underscores that APLE has a P/CF ratio of 7.86. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.14. APLE's P/CF has been as high as 9.97 and as low as 6.68, with a median of 8.65, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Apple Hospitality REIT is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, APLE feels like a great value stock at the moment.