Some clouds and possibly an isolated thunderstorm this afternoon. A few storms may be severe. High 83F. Winds WSW at 10 to 15 mph. Chance of rain 30%..
Tonight
Partly cloudy skies. Low 62F. Winds NW at 5 to 10 mph.
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Chatham Lodging Trust REIT (CLDT). CLDT is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.77, which compares to its industry's average of 17.00. CLDT's Forward P/E has been as high as 8.70 and as low as 5.56, with a median of 7.10, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CLDT has a P/S ratio of 2.16. This compares to its industry's average P/S of 4.08.
If you're looking for another solid REIT and Equity Trust - Other value stock, take a look at Hudson Pacific Properties (HPP). HPP is a Zacks Rank of #2 (Buy) stock with a Value score of A.
Shares of Hudson Pacific Properties currently hold a Forward P/E ratio of 14.59, and its PEG ratio is 0.55. In comparison, its industry sports average P/E and PEG ratios of 17.00 and 1.51.
HPP's Forward P/E has been as high as 15.55 and as low as 4.61, with a median of 6.38. During the same time period, its PEG ratio has been as high as 0.69, as low as 0.53, with a median of 0.60.
Additionally, Hudson Pacific Properties has a P/B ratio of 0.33 while its industry's price-to-book ratio sits at 1.98. For HPP, this valuation metric has been as high as 0.36, as low as 0.10, with a median of 0.16 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Chatham Lodging Trust REIT and Hudson Pacific Properties are likely undervalued currently. And when considering the strength of its earnings outlook, CLDT and HPP sticks out as one of the market's strongest value stocks.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Keep it Clean. Please avoid obscene, vulgar, lewd,
racist or sexually-oriented language. PLEASE TURN OFF YOUR CAPS LOCK. Don't Threaten. Threats of harming another
person will not be tolerated. Be Truthful. Don't knowingly lie about anyone
or anything. Be Nice. No racism, sexism or any sort of -ism
that is degrading to another person. Be Proactive. Use the 'Report' link on
each comment to let us know of abusive posts. Share with Us. We'd love to hear eyewitness
accounts, the history behind an article.
(0) comments
Welcome to the discussion.
Log In
Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.