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

One company value investors might notice is Braemar Hotels & Resorts (BHR - Free Report) . BHR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 6.34 right now. For comparison, its industry sports an average P/E of 18.51. 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 6.49.

BHR is also sporting a PEG ratio of 1.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BHR's PEG compares to its industry's average PEG of 3.20. Within the past year, BHR's PEG has been as high as 1.55 and as low as 0.91, with a median of 1.38.

Finally, our model also underscores that BHR has a P/CF ratio of 6.43. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.61. BHR's P/CF has been as high as 7.42 and as low as 4.27, with a median of 6.24, all within the past year.

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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