Have you been paying attention to shares of Pebblebrook Hotel (PEB)? Shares have been on the move with the stock up 10.3% over the past month. The stock hit a new 52-week high of $20.24 in the previous session. Pebblebrook Hotel has gained 77.6% since the start of the year compared to the 2.6% gain for the Zacks Finance sector and the 6.1% return for the Zacks REIT and Equity Trust - Other industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 29, 2026, Pebblebrook Hotel reported EPS of $0.17 versus consensus estimate of $0.62.
For the current fiscal year, Pebblebrook Hotel is expected to post earnings of $1.84 per share on $1.49 in revenues. This represents a 16.46% change in EPS on a 0.95% change in revenues. For the next fiscal year, the company is expected to earn $1.79 per share on $1.53 in revenues. This represents a year-over-year change of -2.63% and 2.61%, respectively.
Valuation Metrics
Though Pebblebrook Hotel has recently hit a 52-week high, what is next for Pebblebrook Hotel? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Pebblebrook Hotel has a Value Score of A. The stock's Growth and Momentum Scores are D and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 11X current fiscal year EPS estimates, which is not in-line with the peer industry average of 11.4X. On a trailing cash flow basis, the stock currently trades at 13.1X versus its peer group's average of 12.5X. Additionally, the stock has a PEG ratio of 1.27. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Pebblebrook Hotel an interesting choice for value investors.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Pebblebrook Hotel currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Pebblebrook Hotel fits the bill. Thus, it seems as though Pebblebrook Hotel shares could have potential in the weeks and months to come.
How Does PEB Stack Up to the Competition?
Shares of PEB have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is American Healthcare REIT, Inc. (AHR). AHR has a Zacks Rank of #2 (Buy) and a Value Score of C, a Growth Score of B, and a Momentum Score of B.
Earnings were strong last quarter. American Healthcare REIT, Inc. beat our consensus estimate by 3.85%, and for the current fiscal year, AHR is expected to post earnings of $2.19 per share on revenue of $2.84 billion.
Shares of American Healthcare REIT, Inc. have gained 0.3% over the past month, and currently trade at a forward P/E of 24X and a P/CF of 33.05X.
The REIT and Equity Trust - Other industry is in the top 36% of all the industries we have in our universe, so it looks like there are some nice tailwinds for PEB and AHR, even beyond their own solid fundamental situation.
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Pebblebrook Hotel Trust (PEB): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).