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DiamondRock Hospitality Company (DRH) Hit a 52 Week High, Can the Run Continue?
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A strong stock as of late has been DiamondRock Hospitality (DRH - Free Report) . Shares have been marching higher, with the stock up 11.3% over the past month. The stock hit a new 52-week high of $10.68 in the previous session. DiamondRock Hospitality has gained 16.9% since the start of the year compared to the -0.7% gain for the Zacks Finance sector and the 10.5% return for the Zacks REIT and Equity Trust - Other industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 30, 2026, DiamondRock Hospitality reported EPS of $0.07 versus consensus estimate of $0.19.
For the current fiscal year, DiamondRock Hospitality is expected to post earnings of $1.14 per share on $1.15 in revenues. This represents a 5.56% change in EPS on a 2.37% change in revenues. For the next fiscal year, the company is expected to earn $1.18 per share on $1.17 in revenues. This represents a year-over-year change of 3.54% and 2.38%, respectively.
Valuation Metrics
Though DiamondRock Hospitality has recently hit a 52-week high, what is next for DiamondRock Hospitality? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
DiamondRock Hospitality has a Value Score of B. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 9.2X current fiscal year EPS estimates, which is not in-line with the peer industry average of 12.4X. On a trailing cash flow basis, the stock currently trades at 9.9X versus its peer group's average of 12.5X. Additionally, the stock has a PEG ratio of 2.84. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, DiamondRock Hospitality currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if DiamondRock Hospitality passes the test. Thus, it seems as though DiamondRock Hospitality shares could have potential in the weeks and months to come.
How Does DRH Stack Up to the Competition?
Shares of DRH have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Pebblebrook Hotel Trust (PEB - Free Report) . PEB has a Zacks Rank of #1 (Strong Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of B.
Earnings were strong last quarter. Pebblebrook Hotel Trust beat our consensus estimate by 39.13%, and for the current fiscal year, PEB is expected to post earnings of $1.59 per share on revenue of $1.46 billion.
Shares of Pebblebrook Hotel Trust have gained 10% over the past month, and currently trade at a forward P/E of 8.86X and a P/CF of 9.17X.
The REIT and Equity Trust - Other industry is in the top 20% of all the industries we have in our universe, so it looks like there are some nice tailwinds for DRH and PEB, even beyond their own solid fundamental situation.
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DiamondRock Hospitality Company (DRH) Hit a 52 Week High, Can the Run Continue?
A strong stock as of late has been DiamondRock Hospitality (DRH - Free Report) . Shares have been marching higher, with the stock up 11.3% over the past month. The stock hit a new 52-week high of $10.68 in the previous session. DiamondRock Hospitality has gained 16.9% since the start of the year compared to the -0.7% gain for the Zacks Finance sector and the 10.5% return for the Zacks REIT and Equity Trust - Other industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 30, 2026, DiamondRock Hospitality reported EPS of $0.07 versus consensus estimate of $0.19.
For the current fiscal year, DiamondRock Hospitality is expected to post earnings of $1.14 per share on $1.15 in revenues. This represents a 5.56% change in EPS on a 2.37% change in revenues. For the next fiscal year, the company is expected to earn $1.18 per share on $1.17 in revenues. This represents a year-over-year change of 3.54% and 2.38%, respectively.
Valuation Metrics
Though DiamondRock Hospitality has recently hit a 52-week high, what is next for DiamondRock Hospitality? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
DiamondRock Hospitality has a Value Score of B. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 9.2X current fiscal year EPS estimates, which is not in-line with the peer industry average of 12.4X. On a trailing cash flow basis, the stock currently trades at 9.9X versus its peer group's average of 12.5X. Additionally, the stock has a PEG ratio of 2.84. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, DiamondRock Hospitality currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if DiamondRock Hospitality passes the test. Thus, it seems as though DiamondRock Hospitality shares could have potential in the weeks and months to come.
How Does DRH Stack Up to the Competition?
Shares of DRH have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Pebblebrook Hotel Trust (PEB - Free Report) . PEB has a Zacks Rank of #1 (Strong Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of B.
Earnings were strong last quarter. Pebblebrook Hotel Trust beat our consensus estimate by 39.13%, and for the current fiscal year, PEB is expected to post earnings of $1.59 per share on revenue of $1.46 billion.
Shares of Pebblebrook Hotel Trust have gained 10% over the past month, and currently trade at a forward P/E of 8.86X and a P/CF of 9.17X.
The REIT and Equity Trust - Other industry is in the top 20% of all the industries we have in our universe, so it looks like there are some nice tailwinds for DRH and PEB, even beyond their own solid fundamental situation.