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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Sunstone Hotel Investors, Inc. (NYSE:SHO) due to its excellent fundamentals in more than one area. SHO is a highly-regarded dividend-paying company with a great history of performance, trading at a discount. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on Sunstone Hotel Investors here.
Good value with proven track record and pays a dividend
Over the past few years, SHO has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, SHO also outperformed its industry, which delivered a growth of 17%. This is what investors like to see! SHO's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts' consensus forecast growth be correct. Compared to the rest of the real estate industry, SHO is also trading below its peers, relative to earnings generated. This bolsters the proposition that SHO's price is currently discounted.
SHO's high dividend payments make it one of the best dividend stocks on the market, and its profitability ensures that dividends are well-covered by its net income.
For Sunstone Hotel Investors, there are three essential factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for SHO’s future growth? Take a look at our free research report of analyst consensus for SHO’s outlook.
Financial Health: Are SHO’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SHO? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.