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Is Douglas Emmett (DEI) Stock Undervalued 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Douglas Emmett (DEI - Free Report) . DEI is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 11.11, which compares to its industry's average of 16.53. Over the past year, DEI's Forward P/E has been as high as 13.48 and as low as 9.01, with a median of 11.23.

Another notable valuation metric for DEI is its P/B ratio of 0.75. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. DEI's current P/B looks attractive when compared to its industry's average P/B of 1.92. Within the past 52 weeks, DEI's P/B has been as high as 0.93 and as low as 0.60, with a median of 0.76.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DEI has a P/S ratio of 2.03. This compares to its industry's average P/S of 4.14.

Finally, our model also underscores that DEI has a P/CF ratio of 6.24. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. DEI's P/CF compares to its industry's average P/CF of 15.29. Within the past 12 months, DEI's P/CF has been as high as 8.61 and as low as 4.95, with a median of 6.56.

Park Hotels & Resorts (PK - Free Report) may be another strong REIT and Equity Trust - Other stock to add to your shortlist. PK is a Zacks Rank of #2 (Buy) stock with a Value grade of A.

Shares of Park Hotels & Resorts currently hold a Forward P/E ratio of 5.89, and its PEG ratio is 1.37. In comparison, its industry sports average P/E and PEG ratios of 16.53 and 1.48.

Over the past year, PK's P/E has been as high as 7.11, as low as 4.38, with a median of 5.77; its PEG ratio has been as high as 6.29, as low as 0.61, with a median of 1.28 during the same time period.

Additionally, Park Hotels & Resorts has a P/B ratio of 0.71 while its industry's price-to-book ratio sits at 1.92. For PK, this valuation metric has been as high as 0.88, as low as 0.52, with a median of 0.70 over the past year.

These are just a handful of the figures considered in Douglas Emmett and Park Hotels & Resorts'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 DEI and PK is an impressive value stock right now.

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