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Pebblebrook Hotel Trust (PEB) Soars to 52-Week High, Time to Cash Out?

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Shares of Pebblebrook Hotel (PEB - Free Report) have been strong performers lately, with the stock up 29.3% over the past month. The stock hit a new 52-week high of $18.2 in the previous session. Pebblebrook Hotel has gained 60.6% since the start of the year compared to the 3% gain for the Zacks Finance sector and the 14.3% 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 April 28, 2026, Pebblebrook Hotel reported EPS of -$0.26 versus consensus estimate of $0.23.

For the current fiscal year, Pebblebrook Hotel is expected to post earnings of $1.68 per share on $1.46 in revenues. This represents a 6.33% change in EPS on a -1.05% change in revenues. For the next fiscal year, the company is expected to earn $1.71 per share on $1.5 in revenues. This represents a year-over-year change of 1.98% and 2.49%, respectively.

Valuation Metrics

While Pebblebrook Hotel has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? 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. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

Pebblebrook Hotel has a Value Score of A. The stock's Growth and Momentum Scores are C and D, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 10.8X 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 11.8X versus its peer group's average of 13X. Additionally, the stock has a PEG ratio of 1.5. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Pebblebrook Hotel an interesting choice for value investors.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Pebblebrook Hotel currently has a Zacks Rank of #1 (Strong 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 Pebblebrook Hotel fits the bill. Thus, it seems as though Pebblebrook Hotel shares could have a bit more room to run in the near term.

How Does PEB Stack Up to the Competition?

Shares of PEB 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 Diversified Healthcare Trust (DHC - Free Report) . DHC has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of A.

Earnings were strong last quarter. Diversified Healthcare Trust beat our consensus estimate by 7.69%, and for the current fiscal year, DHC is expected to post earnings of $0.60 per share on revenue of $1.5 billion.

Shares of Diversified Healthcare Trust have gained 8% over the past month, and currently trade at a forward P/E of 15.05X and a P/CF of 40.42X.

The REIT and Equity Trust - Other industry is in the top 32% of all the industries we have in our universe, so it looks like there are some nice tailwinds for PEB and DHC, even beyond their own solid fundamental situation.

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