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Sotherly Hotels (SOHO) Stock Sinks As Market Gains: What You Should Know

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Sotherly Hotels (SOHO - Free Report) closed the most recent trading day at $7.31, moving -1.48% from the previous trading session. This move lagged the S&P 500's daily gain of 0.18%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.03%.

Heading into today, shares of the real estate investment trust had gained 12.77% over the past month, outpacing the Finance sector's gain of 2.83% and the S&P 500's gain of 4.28% in that time.

Investors will be hoping for strength from SOHO as it approaches its next earnings release, which is expected to be February 26, 2019.

Investors might also notice recent changes to analyst estimates for SOHO. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. SOHO is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, SOHO currently has a Forward P/E ratio of 6.57. For comparison, its industry has an average Forward P/E of 15.16, 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 industry currently has a Zacks Industry Rank of 143, which puts it in the bottom 44% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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