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Is Braemar Hotels & Resorts (BHR) 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.

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

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is Braemar Hotels & Resorts (BHR - Free Report) . BHR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors should also recognize that BHR has a P/B ratio of 0.63. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. BHR's current P/B looks attractive when compared to its industry's average P/B of 1.62. Within the past 52 weeks, BHR's P/B has been as high as 0.75 and as low as 0.40, with a median of 0.53.

Finally, we should also recognize that BHR has a P/CF ratio of 11.29. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.02. BHR's P/CF has been as high as 11.49 and as low as 1.67, with a median of 2.30, all within the past year.

These are only a few of the key metrics included in Braemar Hotels & Resorts'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, BHR looks like an impressive value stock at the moment.


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