We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are Investors Undervaluing Host Hotels & Resorts (HST) Right Now?
Read MoreHide Full Article
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Host Hotels & Resorts (HST - Free Report) . HST is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.84. This compares to its industry's average Forward P/E of 15.79. Over the past year, HST's Forward P/E has been as high as 9.77 and as low as 6.79, with a median of 8.52.
Investors should also note that HST holds a PEG ratio of 1.65. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HST's PEG compares to its industry's average PEG of 1.81. Within the past year, HST's PEG has been as high as 1.67 and as low as 1.54, with a median of 1.59.
We should also highlight that HST has a P/B ratio of 1.8. 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 1.81. Over the past 12 months, HST's P/B has been as high as 1.99 and as low as 1.32, with a median of 1.73.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HST has a P/S ratio of 2.05. This compares to its industry's average P/S of 3.85.
Finally, our model also underscores that HST has a P/CF ratio of 8.31. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. HST's current P/CF looks attractive when compared to its industry's average P/CF of 15.54. HST's P/CF has been as high as 9.04 and as low as 6.05, with a median of 7.87, 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 Host Hotels & Resorts is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HST feels like a great value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing Host Hotels & Resorts (HST) Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Host Hotels & Resorts (HST - Free Report) . HST is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.84. This compares to its industry's average Forward P/E of 15.79. Over the past year, HST's Forward P/E has been as high as 9.77 and as low as 6.79, with a median of 8.52.
Investors should also note that HST holds a PEG ratio of 1.65. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HST's PEG compares to its industry's average PEG of 1.81. Within the past year, HST's PEG has been as high as 1.67 and as low as 1.54, with a median of 1.59.
We should also highlight that HST has a P/B ratio of 1.8. 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 1.81. Over the past 12 months, HST's P/B has been as high as 1.99 and as low as 1.32, with a median of 1.73.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HST has a P/S ratio of 2.05. This compares to its industry's average P/S of 3.85.
Finally, our model also underscores that HST has a P/CF ratio of 8.31. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. HST's current P/CF looks attractive when compared to its industry's average P/CF of 15.54. HST's P/CF has been as high as 9.04 and as low as 6.05, with a median of 7.87, 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 Host Hotels & Resorts is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HST feels like a great value stock at the moment.