Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Clipper Realty (CLPR). CLPR is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 7.96, while its industry has an average P/E of 15.42. Over the past 52 weeks, CLPR's Forward P/E has been as high as 14.24 and as low as 6.80, with a median of 10.53.
Finally, we should also recognize that CLPR has a P/CF ratio of 9.47. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 14.76. CLPR's P/CF has been as high as 10.00 and as low as 5.23, with a median of 8.11, all within the past year.
Pebblebrook Hotel Trust (PEB) may be another strong REIT and Equity Trust - Other stock to add to your shortlist. PEB is a Zacks Rank of #2 (Buy) stock with a Value grade of A.
Shares of Pebblebrook Hotel Trust are currently trading at a forward earnings multiple of 6.46 and a PEG ratio of 1.49 compared to its industry's P/E and PEG ratios of 15.42 and 2.02, respectively.
PEB's price-to-earnings ratio has been as high as 8.94 and as low as 4.77, with a median of 7.49, while its PEG ratio has been as high as 2.03 and as low as 0.50, with a median of 0.57, all within the past year.
Pebblebrook Hotel Trust sports a P/B ratio of 0.41 as well; this compares to its industry's price-to-book ratio of 1.68. In the past 52 weeks, PEB's P/B has been as high as 0.63, as low as 0.34, with a median of 0.52.
These are only a few of the key metrics included in Clipper Realty and Pebblebrook Hotel Trust strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CLPR and PEB look like an impressive value stock at the moment.
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Clipper Realty Inc. (CLPR): Free Stock Analysis Report Pebblebrook Hotel Trust (PEB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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