Why Choice Hotels (CHH) is a Top Value Stock for the Long-Term
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
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 B. Shares are currently trading at a forward P/E of 17.1X for the current fiscal year compared to the Hotels and Motels industry's P/E of 23.5X. Additionally, CHH has a PEG Ratio of 1.4 and a Price/Cash Flow ratio of 16.6X. Value investors should also note CHH's Price/Sales ratio of 3.7X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2023. The Zacks Consensus Estimate has increased $0.01 to $6.02 per share. CHH has 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
