Back to top

Image: Bigstock

Should Value Investors Buy Hersha Hospitality (HT) Stock?

Read MoreHide Full Article

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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

One company to watch right now is Hersha Hospitality (HT - Free Report) . HT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 6.11, while its industry has an average P/E of 18. Over the past 52 weeks, HT's Forward P/E has been as high as 8.51 and as low as 6.01, with a median of 7.55.

Investors should also note that HT holds a PEG ratio of 1.15. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HT's industry has an average PEG of 3.05 right now. Over the last 12 months, HT's PEG has been as high as 1.77 and as low as 1.13, with a median of 1.58.

Finally, investors should note that HT has a P/CF ratio of 5.43. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. HT's P/CF compares to its industry's average P/CF of 16.72. Over the past 52 weeks, HT's P/CF has been as high as 8.85 and as low as 5.26, with a median of 6.70.

These are only a few of the key metrics included in Hersha Hospitality's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, HT looks like an impressive value stock at the moment.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Hersha Hospitality Trust (HT) - free report >>

Published in