Here's Why Choice Hotels (CHH) is a Strong Value Stock
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
Choice Hotels (CHH)
Choice Hotels International is one of the largest hotel franchisors globally. As of Sep 30, 2023, the company had 7,463 hotels open, representing 627,694 rooms. This hotel chain is spread across 45 countries and territories internationally and is present in 50 states domestically and the District of Columbia.
CHH boasts a Value Style Score of B and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Shares of Choice Hotels are trading at a forward earnings multiple of 17.9X, as well as a PEG Ratio of 1.4, a Price/Cash Flow ratio of 17.4X, and a Price/Sales ratio of 3.9X.
A company's earnings performance is important for value investors as well. For fiscal 2023, two analysts revised their earnings estimate higher in the last 60 days for CHH, while the Zacks Consensus Estimate has increased $0.01 to $6.02 per share. CHH also holds an average earnings surprise of 5.2%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding CHH to their portfolios.
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Choice Hotels International, Inc. (CHH) : Free Stock Analysis Report
