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Is Condor Hospitality (CDOR) Stock Undervalued Right Now?

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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.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 company to watch right now is Condor Hospitality (CDOR - Free Report) . CDOR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 10.65, which compares to its industry's average of 17.24. Over the past year, CDOR's Forward P/E has been as high as 10.65 and as low as 6.09, with a median of 8.67.

We should also highlight that CDOR has a P/B ratio of 1.37. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.61. CDOR's P/B has been as high as 1.37 and as low as 0.84, with a median of 1.18, over the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CDOR has a P/S ratio of 2.03. This compares to its industry's average P/S of 6.08.

Finally, we should also recognize that CDOR has a P/CF ratio of 8.84. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. CDOR's current P/CF looks attractive when compared to its industry's average P/CF of 16.67. Within the past 12 months, CDOR's P/CF has been as high as 9.56 and as low as 4.68, with a median of 7.12.

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


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