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RLJ Lodging Trust (RLJ) Hits Fresh High: Is There Still Room to Run?
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A strong stock as of late has been RLJ Lodging (RLJ - Free Report) . Shares have been marching higher, with the stock up 18.6% over the past month. The stock hit a new 52-week high of $11.54 in the previous session. RLJ Lodging has gained 52.5% since the start of the year compared to the 4% move for the Zacks Finance sector and the 11.3% 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 4, 2026, RLJ Lodging reported EPS of -$0.05 versus consensus estimate of $0.27.
For the current fiscal year, RLJ Lodging is expected to post earnings of $1.4 per share on $1.37 in revenues. This represents a 0.72% change in EPS on a 1.4% change in revenues. For the next fiscal year, the company is expected to earn $1.38 per share on $1.4 in revenues. This represents a year-over-year change of -0.96% and 2.6%, respectively.
Valuation Metrics
While RLJ Lodging has moved to its 52-week high over the past few weeks, 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 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). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. 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.
RLJ Lodging has a Value Score of A. The stock's Growth and Momentum Scores are D and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 8.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 13X. On a trailing cash flow basis, the stock currently trades at 7.1X versus its peer group's average of 12.8X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making RLJ Lodging an interesting choice for value investors.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, RLJ Lodging 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 RLJ Lodging fits the bill. Thus, it seems as though RLJ Lodging shares could still be poised for more gains ahead.
How Does RLJ Stack Up to the Competition?
Shares of RLJ 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 A.
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 $1.68 per share on revenue of $1.46 billion.
Shares of Pebblebrook Hotel Trust have gained 26.7% over the past month, and currently trade at a forward P/E of 11.12X and a P/CF of 12.2X.
The REIT and Equity Trust - Other industry is in the top 31% of all the industries we have in our universe, so it looks like there are some nice tailwinds for RLJ and PEB, even beyond their own solid fundamental situation.
View the Zacks #1 Rank List
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RLJ Lodging Trust (RLJ) Hits Fresh High: Is There Still Room to Run?
A strong stock as of late has been RLJ Lodging (RLJ - Free Report) . Shares have been marching higher, with the stock up 18.6% over the past month. The stock hit a new 52-week high of $11.54 in the previous session. RLJ Lodging has gained 52.5% since the start of the year compared to the 4% move for the Zacks Finance sector and the 11.3% 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 4, 2026, RLJ Lodging reported EPS of -$0.05 versus consensus estimate of $0.27.
For the current fiscal year, RLJ Lodging is expected to post earnings of $1.4 per share on $1.37 in revenues. This represents a 0.72% change in EPS on a 1.4% change in revenues. For the next fiscal year, the company is expected to earn $1.38 per share on $1.4 in revenues. This represents a year-over-year change of -0.96% and 2.6%, respectively.
Valuation Metrics
While RLJ Lodging has moved to its 52-week high over the past few weeks, 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 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). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. 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.
RLJ Lodging has a Value Score of A. The stock's Growth and Momentum Scores are D and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 8.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 13X. On a trailing cash flow basis, the stock currently trades at 7.1X versus its peer group's average of 12.8X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making RLJ Lodging an interesting choice for value investors.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, RLJ Lodging 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 RLJ Lodging fits the bill. Thus, it seems as though RLJ Lodging shares could still be poised for more gains ahead.
How Does RLJ Stack Up to the Competition?
Shares of RLJ 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 A.
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 $1.68 per share on revenue of $1.46 billion.
Shares of Pebblebrook Hotel Trust have gained 26.7% over the past month, and currently trade at a forward P/E of 11.12X and a P/CF of 12.2X.
The REIT and Equity Trust - Other industry is in the top 31% of all the industries we have in our universe, so it looks like there are some nice tailwinds for RLJ and PEB, even beyond their own solid fundamental situation.