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Is Braemar Hotels & Resorts (BHR) a Great Value Stock 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.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 Braemar Hotels & Resorts (BHR - Free Report) . BHR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

BHR is also sporting 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 3.13. 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 should note that BHR has a P/CF ratio of 5.94. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.04. 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 5.87.

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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