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Should Value Investors Buy Braemar Hotels & Resorts (BHR) Stock?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Braemar Hotels & Resorts (BHR - Free Report) . BHR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 5.57, which compares to its industry's average of 14.57. Over the last 12 months, BHR's Forward P/E has been as high as 7.85 and as low as 5.34, with a median of 6.53.

We also note that BHR holds a PEG ratio of 0.93. 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. BHR's PEG compares to its industry's average PEG of 2.62. Within the past year, BHR's PEG has been as high as 1.03 and as low as 0.91, with a median of 0.97.

Another notable valuation metric for BHR is its P/B ratio of 0.75. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. BHR's current P/B looks attractive when compared to its industry's average P/B of 2.19. Over the past 12 months, BHR's P/B has been as high as 1.02 and as low as 0.73, with a median of 0.90.

Value investors will likely look at more than just these metrics, but the above data helps show that Braemar Hotels & Resorts is likely undervalued currently. And when considering the strength of its earnings outlook, BHR sticks out at as one of the market's strongest value stocks.


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