Playa Hotels & Resorts (PLYA) Stock Sinks As Market Gains: What You Should Know
Playa Hotels & Resorts (PLYA) closed at $9.05 in the latest trading session, marking a -0.88% move from the prior day. This move lagged the S&P 500's daily gain of 1.22%. At the same time, the Dow added 1.26%, and the tech-heavy Nasdaq gained 4.63%.
Prior to today's trading, shares of the developer and operator of all-inclusive resorts had gained 0.77% over the past month. This has lagged the Consumer Discretionary sector's gain of 4.61% and the S&P 500's gain of 6.22% in that time.
Playa Hotels & Resorts will be looking to display strength as it nears its next earnings release. In that report, analysts expect Playa Hotels & Resorts to post earnings of $0.12 per share. This would mark 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.59 per share and revenue of $944.55 million, which would represent changes of +18% and +10.31%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Playa Hotels & Resorts. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.91% higher within the past month. Playa Hotels & Resorts is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Playa Hotels & Resorts has a Forward P/E ratio of 15.48 right now. For comparison, its industry has an average Forward P/E of 20.45, which means Playa Hotels & Resorts is trading at a discount to the group.
Also, we should mention that PLYA has a PEG ratio of 4.51. 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. Hotels and Motels stocks are, on average, holding a PEG ratio of 1.97 based on yesterday's closing prices.
The Hotels and Motels industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 84, putting it in the top 34% 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.
To follow PLYA in the coming trading sessions, be sure to utilize Zacks.com.
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Playa Hotels & Resorts N.V. (PLYA) : Free Stock Analysis Report
