The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Pebblebrook Hotel Trust (PEB). PEB is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 7.82 right now. For comparison, its industry sports an average P/E of 15.02. PEB's Forward P/E has been as high as 8.94 and as low as 4.77, with a median of 7.42, all within the past year.
We also note that PEB holds a PEG ratio of 1.49. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PEB's industry currently sports an average PEG of 1.68. PEB's PEG has been as high as 2.03 and as low as 0.50, with a median of 0.58, all within the past year.
Finally, investors should note that PEB has a P/CF ratio of 6.38. 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 14.84. PEB's P/CF has been as high as 13.87 and as low as 3.92, with a median of 5.94, all within the past year.
These are only a few of the key metrics included in Pebblebrook Hotel Trust'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, PEB looks like an impressive value stock at the moment.
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Pebblebrook Hotel Trust (PEB): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).