Playa Hotels & Resorts (PLYA) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Playa Hotels & Resorts (PLYA) closed at $8.08, marking a +1.25% move from the previous day. This move outpaced the S&P 500's daily gain of 1.15%. At the same time, the Dow added 0.63%, and the tech-heavy Nasdaq gained 7.23%.
Coming into today, shares of the developer and operator of all-inclusive resorts had lost 11.73% in the past month. In that same time, the Consumer Discretionary sector gained 3.44%, while the S&P 500 gained 3.08%.
Investors will be hoping for strength from Playa Hotels & Resorts as it approaches its next earnings release. On that day, Playa Hotels & Resorts is projected to report earnings of $0.12 per share, which would represent a year-over-year decline of 20%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $236.86 million, up 7.04% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.53 per share and revenue of $944.55 million. These totals would mark changes of +6% and +10.31%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Playa Hotels & Resorts. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 6.98% lower. Playa Hotels & Resorts currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Playa Hotels & Resorts is holding a Forward P/E ratio of 14.96. Its industry sports an average Forward P/E of 19.27, so we one might conclude that Playa Hotels & Resorts is trading at a discount comparatively.
It is also worth noting that PLYA currently has a PEG ratio of 4.36. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Hotels and Motels was holding an average PEG ratio of 1.85 at yesterday's closing price.
The Hotels and Motels industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 41, which puts it in the top 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Playa Hotels & Resorts N.V. (PLYA) : Free Stock Analysis Report
