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.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most 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 is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 18.9X for the current fiscal year compared to the Hotels and Motels industry's P/E of 20.3X. Additionally, CHH has a PEG Ratio of 1.5 and a Price/Cash Flow ratio of 16.3X. Value investors should also note CHH's Price/Sales ratio of 3.7X.
A company's earnings performance is important for value investors as well. For fiscal 2023, four analysts revised their earnings estimate higher in the last 60 days for CHH, while the Zacks Consensus Estimate has increased $0.02 to $6.02 per share. CHH also holds an average earnings surprise of 5.2%.
CHH should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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
Choice Hotels International, Inc. (CHH) : Free Stock Analysis Report
