The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 value investors might notice is Hersha Hospitality (HT - Free Report) . HT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.42 right now. For comparison, its industry sports an average P/E of 15.91. HT's Forward P/E has been as high as 10.08 and as low as 7.32, with a median of 8.02, all within the past year.
Investors will also notice that HT has a PEG ratio of 1.90. 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. HT's PEG compares to its industry's average PEG of 2.91. Within the past year, HT's PEG has been as high as 2.54 and as low as 1.04, with a median of 1.88.
Another valuation metric that we should highlight is HT's P/B ratio of 0.87. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.55. Within the past 52 weeks, HT's P/B has been as high as 0.89 and as low as 0.71, with a median of 0.81.
Finally, our model also underscores that HT has a P/CF ratio of 9.83. 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. HT's P/CF compares to its industry's average P/CF of 15.93. HT's P/CF has been as high as 10.07 and as low as 3.67, with a median of 3.97, all within the past year.
These are just a handful of the figures considered in Hersha Hospitality'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 HT is an impressive value stock right now.