Is Summit Hotel Properties (INN) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is Summit Hotel Properties (INN). INN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 9.65 right now. For comparison, its industry sports an average P/E of 16.01. INN's Forward P/E has been as high as 9.67 and as low as 5.77, with a median of 7.14, all within the past year.
Finally, investors will want to recognize that INN has a P/CF ratio of 4.84. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.49. INN's P/CF has been as high as 5.90 and as low as 3.75, with a median of 4.39, all within the past year.
Investors could also keep in mind Park Hotels & Resorts (PK), an REIT and Equity Trust - Other stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Park Hotels & Resorts is currently trading with a Forward P/E ratio of 8.49 while its PEG ratio sits at 0.81. Both of the company's metrics compare favorably to its industry's average P/E of 16.01 and average PEG ratio of 2.24.
PK's price-to-earnings ratio has been as high as 8.49 and as low as 5.78, with a median of 6.60, while its PEG ratio has been as high as 0.95 and as low as 0.61, with a median of 0.73, all within the past year.
Furthermore, Park Hotels & Resorts holds a P/B ratio of 0.92 and its industry's price-to-book ratio is 1.80. PK's P/B has been as high as 0.92, as low as 0.58, with a median of 0.69 over the past 12 months.
These are only a few of the key metrics included in Summit Hotel Properties and Park Hotels & Resorts strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, INN and PK look like an impressive value stock at the moment.
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Summit Hotel Properties, Inc. (INN) : Free Stock Analysis Report
Park Hotels & Resorts Inc. (PK) : Free Stock Analysis Report
