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Sunstone Hotel Investors, Inc. (SHO) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of Sunstone Hotel Investors (SHO - Free Report) ? Shares have been on the move with the stock up 13.1% over the past month. The stock hit a new 52-week high of $11.71 in the previous session. Sunstone Hotel has gained 29.5% since the start of the year compared to the 1.2% gain for the Zacks Finance sector and the 13.3% 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 May 5, 2026, Sunstone Hotel reported EPS of $0.08 versus consensus estimate of $0.22 while it beat the consensus revenue estimate by 7.13%.
For the current fiscal year, Sunstone Hotel is expected to post earnings of $0.91 per share on $1 in revenues. This represents a 5.81% change in EPS on a 4.49% change in revenues. For the next fiscal year, the company is expected to earn $0.98 per share on $1.03 in revenues. This represents a year-over-year change of 6.72% and 3.15%, respectively.
Valuation Metrics
Though Sunstone Hotel has recently hit a 52-week high, what is next for Sunstone Hotel? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
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.
Sunstone Hotel has a Value Score of B. The stock's Growth and Momentum Scores are D and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 12.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 13.1X. On a trailing cash flow basis, the stock currently trades at 12.8X versus its peer group's average of 12.7X. Additionally, the stock has a PEG ratio of 2.59. 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, Sunstone Hotel currently has a Zacks Rank of #1 (Strong Buy) thanks to a solid earnings estimate revision trend.
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 Sunstone Hotel fits the bill. Thus, it seems as though Sunstone Hotel shares could still be poised for more gains ahead.
How Does SHO Stack Up to the Competition?
Shares of SHO 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 Chatham Lodging Trust (REIT) (CLDT - Free Report) . CLDT has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of B.
Earnings were strong last quarter. Chatham Lodging Trust (REIT) beat our consensus estimate by 25.00%, and for the current fiscal year, CLDT is expected to post earnings of $1.28 per share on revenue of $312.76 million.
Shares of Chatham Lodging Trust (REIT) have gained 21% over the past month, and currently trade at a forward P/E of 9.39X and a P/CF of 7.61X.
The REIT and Equity Trust - Other industry is in the top 41% of all the industries we have in our universe, so it looks like there are some nice tailwinds for SHO and CLDT, even beyond their own solid fundamental situation.
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Sunstone Hotel Investors, Inc. (SHO) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Sunstone Hotel Investors (SHO - Free Report) ? Shares have been on the move with the stock up 13.1% over the past month. The stock hit a new 52-week high of $11.71 in the previous session. Sunstone Hotel has gained 29.5% since the start of the year compared to the 1.2% gain for the Zacks Finance sector and the 13.3% 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 May 5, 2026, Sunstone Hotel reported EPS of $0.08 versus consensus estimate of $0.22 while it beat the consensus revenue estimate by 7.13%.
For the current fiscal year, Sunstone Hotel is expected to post earnings of $0.91 per share on $1 in revenues. This represents a 5.81% change in EPS on a 4.49% change in revenues. For the next fiscal year, the company is expected to earn $0.98 per share on $1.03 in revenues. This represents a year-over-year change of 6.72% and 3.15%, respectively.
Valuation Metrics
Though Sunstone Hotel has recently hit a 52-week high, what is next for Sunstone Hotel? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
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.
Sunstone Hotel has a Value Score of B. The stock's Growth and Momentum Scores are D and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 12.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 13.1X. On a trailing cash flow basis, the stock currently trades at 12.8X versus its peer group's average of 12.7X. Additionally, the stock has a PEG ratio of 2.59. 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, Sunstone Hotel currently has a Zacks Rank of #1 (Strong Buy) thanks to a solid earnings estimate revision trend.
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 Sunstone Hotel fits the bill. Thus, it seems as though Sunstone Hotel shares could still be poised for more gains ahead.
How Does SHO Stack Up to the Competition?
Shares of SHO 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 Chatham Lodging Trust (REIT) (CLDT - Free Report) . CLDT has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of B.
Earnings were strong last quarter. Chatham Lodging Trust (REIT) beat our consensus estimate by 25.00%, and for the current fiscal year, CLDT is expected to post earnings of $1.28 per share on revenue of $312.76 million.
Shares of Chatham Lodging Trust (REIT) have gained 21% over the past month, and currently trade at a forward P/E of 9.39X and a P/CF of 7.61X.
The REIT and Equity Trust - Other industry is in the top 41% of all the industries we have in our universe, so it looks like there are some nice tailwinds for SHO and CLDT, even beyond their own solid fundamental situation.