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Is Pebblebrook Hotel Trust (PEB) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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 Pebblebrook Hotel Trust (PEB - Free Report) . PEB is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 7.82, while its industry has an average P/E of 16.97. Over the last 12 months, PEB's Forward P/E has been as high as 8.94 and as low as 4.77, with a median of 7.42.

PEB is also sporting a PEG ratio of 1.49. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PEB's industry has an average PEG of 1.64 right now. Over the past 52 weeks, PEB's PEG has been as high as 2.03 and as low as 0.50, with a median of 0.58.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PEB has a P/S ratio of 1.4. This compares to its industry's average P/S of 4.01.

Finally, we should also recognize that PEB has a P/CF ratio of 6.38. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. PEB's current P/CF looks attractive when compared to its industry's average P/CF of 15.53. Over the past year, PEB's P/CF has been as high as 13.87 and as low as 3.92, with a median of 5.94.

These are just a handful of the figures considered in Pebblebrook Hotel Trust's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PEB is an impressive value stock right now.

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