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Are Investors Undervaluing Braemar Hotels & Resorts (BHR) Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Braemar Hotels & Resorts (BHR - Free Report) is a stock many investors are watching right now. BHR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 6.17, which compares to its industry's average of 18.15. Over the last 12 months, BHR's Forward P/E has been as high as 9.30 and as low as 5.41, with a median of 6.82.

Investors will also notice that BHR has a PEG ratio of 1.45. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BHR's industry currently sports an average PEG of 3.09. Over the last 12 months, BHR's PEG has been as high as 1.55 and as low as 0.91, with a median of 1.36.

Finally, investors will want to recognize that BHR has a P/CF ratio of 6.01. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. BHR's P/CF compares to its industry's average P/CF of 16.84. Over the past 52 weeks, BHR's P/CF has been as high as 7.21 and as low as 2.76, with a median of 5.83.

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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