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Sotherly Hotels (SOHO) Gains But Lags Market: What You Should Know

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Sotherly Hotels (SOHO - Free Report) closed the most recent trading day at $7.16, moving +0.85% from the previous trading session. This change lagged the S&P 500's 1.29% gain on the day. Meanwhile, the Dow gained 1.49%, and the Nasdaq, a tech-heavy index, added 1.46%.

Prior to today's trading, shares of the real estate investment trust had gained 8.73% over the past month. This has outpaced the Finance sector's gain of 4.44% and the S&P 500's gain of 4.57% in that time.

Wall Street will be looking for positivity from SOHO as it approaches its next earnings report date. This is expected to be February 26, 2019.

Investors should also note any recent changes to analyst estimates for SOHO. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. SOHO currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, SOHO currently has a Forward P/E ratio of 6.28. For comparison, its industry has an average Forward P/E of 15.04, which means SOHO is trading at a discount to the group.

The REIT and Equity Trust - Other industry is part of the Finance sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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