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Should Value Investors Buy Innovative Industrial Properties (IIPR) 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, 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company to watch right now is Innovative Industrial Properties (IIPR - Free Report) . IIPR is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 8.12 right now. For comparison, its industry sports an average P/E of 15.69. Over the past 52 weeks, IIPR's Forward P/E has been as high as 14.64 and as low as 6.11, with a median of 8.01.
Another notable valuation metric for IIPR is its P/B ratio of 0.87. The P/B is a method of comparing a stock's market value to 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 1.83. IIPR's P/B has been as high as 2.00 and as low as 0.70, with a median of 0.96, over the past year.
Finally, our model also underscores that IIPR has a P/CF ratio of 7.67. 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. IIPR's P/CF compares to its industry's average P/CF of 15.38. IIPR's P/CF has been as high as 16.72 and as low as 6.05, with a median of 7.93, all within the past year.
Pebblebrook Hotel Trust (PEB - Free Report) may be another strong REIT and Equity Trust - Other stock to add to your shortlist. PEB is a Zacks Rank of #1 (Strong Buy) stock with a Value grade of A.
Pebblebrook Hotel Trust is currently trading with a Forward P/E ratio of 7.82 while its PEG ratio sits at 1.49. Both of the company's metrics compare favorably to its industry's average P/E of 15.69 and average PEG ratio of 1.98.
Over the last 12 months, PEB's P/E has been as high as 8.94, as low as 4.77, with a median of 7.42, and its PEG ratio has been as high as 2.03, as low as 0.50, with a median of 0.58.
Pebblebrook Hotel Trust sports a P/B ratio of 0.52 as well; this compares to its industry's price-to-book ratio of 1.83. In the past 52 weeks, PEB's P/B has been as high as 0.63, as low as 0.34, with a median of 0.50.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Innovative Industrial Properties and Pebblebrook Hotel Trust are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, IIPR and PEB feels like a great value stock at the moment.
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Should Value Investors Buy Innovative Industrial Properties (IIPR) Stock?
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, 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company to watch right now is Innovative Industrial Properties (IIPR - Free Report) . IIPR is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 8.12 right now. For comparison, its industry sports an average P/E of 15.69. Over the past 52 weeks, IIPR's Forward P/E has been as high as 14.64 and as low as 6.11, with a median of 8.01.
Another notable valuation metric for IIPR is its P/B ratio of 0.87. The P/B is a method of comparing a stock's market value to 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 1.83. IIPR's P/B has been as high as 2.00 and as low as 0.70, with a median of 0.96, over the past year.
Finally, our model also underscores that IIPR has a P/CF ratio of 7.67. 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. IIPR's P/CF compares to its industry's average P/CF of 15.38. IIPR's P/CF has been as high as 16.72 and as low as 6.05, with a median of 7.93, all within the past year.
Pebblebrook Hotel Trust (PEB - Free Report) may be another strong REIT and Equity Trust - Other stock to add to your shortlist. PEB is a Zacks Rank of #1 (Strong Buy) stock with a Value grade of A.
Pebblebrook Hotel Trust is currently trading with a Forward P/E ratio of 7.82 while its PEG ratio sits at 1.49. Both of the company's metrics compare favorably to its industry's average P/E of 15.69 and average PEG ratio of 1.98.
Over the last 12 months, PEB's P/E has been as high as 8.94, as low as 4.77, with a median of 7.42, and its PEG ratio has been as high as 2.03, as low as 0.50, with a median of 0.58.
Pebblebrook Hotel Trust sports a P/B ratio of 0.52 as well; this compares to its industry's price-to-book ratio of 1.83. In the past 52 weeks, PEB's P/B has been as high as 0.63, as low as 0.34, with a median of 0.50.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Innovative Industrial Properties and Pebblebrook Hotel Trust are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, IIPR and PEB feels like a great value stock at the moment.