The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Apple Hospitality REIT (APLE) is a stock many investors are watching right now. APLE is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 9.63, which compares to its industry's average of 14.92. Over the past 52 weeks, APLE's Forward P/E has been as high as 10.93 and as low as 8.35, with a median of 9.54.
We should also highlight that APLE has a P/B ratio of 1.14. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.75. Over the past 12 months, APLE's P/B has been as high as 1.19 and as low as 1, with a median of 1.10.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. APLE has a P/S ratio of 2.62. This compares to its industry's average P/S of 3.95.
Finally, investors should note that APLE has a P/CF ratio of 9.59. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.81. Over the past year, APLE's P/CF has been as high as 10.76 and as low as 8.44, with a median of 9.32.
These are just a handful of the figures considered in Apple Hospitality REIT's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that APLE is an impressive value stock right now.
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Today, See These 5 Potential Home Runs >>Apple Hospitality REIT, Inc. (APLE) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
