Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
Pebblebrook Hotel Trust (PEB) is a stock many investors are watching right now. PEB is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 7.82 right now. For comparison, its industry sports an average P/E of 17.17. Over the past 52 weeks, PEB's Forward P/E has been as high as 8.94 and as low as 4.77, with a median of 7.42.
Investors will also notice that PEB has a PEG ratio of 1.49. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. PEB's PEG compares to its industry's average PEG of 1.56. Over the last 12 months, PEB's PEG has been as high as 2.03 and as low as 0.50, with a median of 0.58.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PEB has a P/S ratio of 1.46. This compares to its industry's average P/S of 4.14.
Finally, investors will want to recognize that PEB has a P/CF ratio of 6.38. 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 stock's P/CF looks attractive against its industry's average P/CF of 15.98. Within the past 12 months, PEB's P/CF has been as high as 13.87 and as low as 3.92, with a median of 5.94.
These are just a handful of the figures considered in Pebblebrook Hotel Trust's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PEB is an impressive value stock right now.
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