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Should Value Investors Buy Apple Hospitality REIT (APLE) 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 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 Apple Hospitality REIT (APLE - Free Report) . APLE is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 8.39 right now. For comparison, its industry sports an average P/E of 16.56. Over the past 52 weeks, APLE's Forward P/E has been as high as 9.93 and as low as 6.69, with a median of 8.64.
Another notable valuation metric for APLE is its P/B ratio of 0.93. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.93. Within the past 52 weeks, APLE's P/B has been as high as 1.19 and as low as 0.79, with a median of 0.98.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. 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 2.06. This compares to its industry's average P/S of 4.02.
Finally, investors should note that APLE has a P/CF ratio of 7.96. 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. APLE's current P/CF looks attractive when compared to its industry's average P/CF of 16.44. Over the past year, APLE's P/CF has been as high as 9.97 and as low as 6.68, with a median of 8.20.
Investors could also keep in mind Community Healthcare Trust (CHCT - Free Report) , another REIT and Equity Trust - Other stock with a Zacks Rank of #2 (Buy) and Value grade of A.
Shares of Community Healthcare Trust are currently trading at a forward earnings multiple of 6.74 and a PEG ratio of 1.03 compared to its industry's P/E and PEG ratios of 16.56 and 1.84, respectively.
CHCT's Forward P/E has been as high as 9.16 and as low as 6.32, with a median of 7.88. During the same time period, its PEG ratio has been as high as 1.15, as low as 0.93, with a median of 1.05.
Community Healthcare Trust also has a P/B ratio of 0.97 compared to its industry's price-to-book ratio of 1.93. Over the past year, its P/B ratio has been as high as 1.21, as low as 0.92, with a median of 1.05.
These are only a few of the key metrics included in Apple Hospitality REIT and Community Healthcare Trust strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, APLE and CHCT look like an impressive value stock at the moment.
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Should Value Investors Buy Apple Hospitality REIT (APLE) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 Apple Hospitality REIT (APLE - Free Report) . APLE is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 8.39 right now. For comparison, its industry sports an average P/E of 16.56. Over the past 52 weeks, APLE's Forward P/E has been as high as 9.93 and as low as 6.69, with a median of 8.64.
Another notable valuation metric for APLE is its P/B ratio of 0.93. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.93. Within the past 52 weeks, APLE's P/B has been as high as 1.19 and as low as 0.79, with a median of 0.98.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. 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 2.06. This compares to its industry's average P/S of 4.02.
Finally, investors should note that APLE has a P/CF ratio of 7.96. 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. APLE's current P/CF looks attractive when compared to its industry's average P/CF of 16.44. Over the past year, APLE's P/CF has been as high as 9.97 and as low as 6.68, with a median of 8.20.
Investors could also keep in mind Community Healthcare Trust (CHCT - Free Report) , another REIT and Equity Trust - Other stock with a Zacks Rank of #2 (Buy) and Value grade of A.
Shares of Community Healthcare Trust are currently trading at a forward earnings multiple of 6.74 and a PEG ratio of 1.03 compared to its industry's P/E and PEG ratios of 16.56 and 1.84, respectively.
CHCT's Forward P/E has been as high as 9.16 and as low as 6.32, with a median of 7.88. During the same time period, its PEG ratio has been as high as 1.15, as low as 0.93, with a median of 1.05.
Community Healthcare Trust also has a P/B ratio of 0.97 compared to its industry's price-to-book ratio of 1.93. Over the past year, its P/B ratio has been as high as 1.21, as low as 0.92, with a median of 1.05.
These are only a few of the key metrics included in Apple Hospitality REIT and Community Healthcare Trust strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, APLE and CHCT look like an impressive value stock at the moment.