Shares of Pebblebrook Hotel (PEB) have been strong performers lately, with the stock up 7.6% over the past month. The stock hit a new 52-week high of $19.78 in the previous session. Pebblebrook Hotel has gained 74.5% since the start of the year compared to the 6.2% move for the Zacks Finance sector and the 14.9% return for the Zacks REIT and Equity Trust - Other industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 28, 2026, Pebblebrook Hotel reported EPS of -$0.26 versus consensus estimate of $0.23.
For the current fiscal year, Pebblebrook Hotel is expected to post earnings of $1.7 per share on $1.47 in revenues. This represents a 7.59% change in EPS on a -0.59% change in revenues. For the next fiscal year, the company is expected to earn $1.73 per share on $1.5 in revenues. This represents a year-over-year change of 1.96% and 2.44%, respectively.
Valuation Metrics
Pebblebrook Hotel may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb 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 B. The stock's Growth and Momentum Scores are C and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 11.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 13.9X. On a trailing cash flow basis, the stock currently trades at 12.9X versus its peer group's average of 13.3X. Additionally, the stock has a PEG ratio of 1.29. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Pebblebrook Hotel currently has a Zacks Rank of #1 (Strong 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 meets the list of requirements. Thus, it seems as though Pebblebrook Hotel shares could have potential in the weeks and months to come.
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Pebblebrook Hotel Trust (PEB): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).