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Are Investors Undervaluing Apple Hospitality REIT (APLE) Right Now?
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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Apple Hospitality REIT (APLE - Free Report) is a stock many investors are watching right now. APLE is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 7.86, which compares to its industry's average of 15.47. Over the last 12 months, APLE's Forward P/E has been as high as 10.85 and as low as 6.69, with a median of 8.84.
Investors should also recognize that APLE has a P/B ratio of 0.87. The P/B ratio pits a stock's market value against 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 1.77. Over the past 12 months, APLE's P/B has been as high as 1.19 and as low as 0.79, with a median of 1.05.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. APLE has a P/S ratio of 1.92. This compares to its industry's average P/S of 3.8.
Finally, we should also recognize that APLE has a P/CF ratio of 7.37. 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. APLE's current P/CF looks attractive when compared to its industry's average P/CF of 15.28. Over the past year, APLE's P/CF has been as high as 9.97 and as low as 6.68, with a median of 8.68.
Another great REIT and Equity Trust - Other stock you could consider is Clipper Realty (CLPR - Free Report) , which is a Zacks Rank of #2 (Buy) stock with a Value Score of A.
Furthermore, Clipper Realty holds a P/B ratio of -1.06 and its industry's price-to-book ratio is 1.77. CLPR's P/B has been as high as -1.06, as low as -19.36, with a median of -4.95 over the past 12 months.
These are just a handful of the figures considered in Apple Hospitality REIT and Clipper Realty'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 and CLPR is an impressive value stock right now.
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Are Investors Undervaluing Apple Hospitality REIT (APLE) Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Apple Hospitality REIT (APLE - Free Report) is a stock many investors are watching right now. APLE is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 7.86, which compares to its industry's average of 15.47. Over the last 12 months, APLE's Forward P/E has been as high as 10.85 and as low as 6.69, with a median of 8.84.
Investors should also recognize that APLE has a P/B ratio of 0.87. The P/B ratio pits a stock's market value against 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 1.77. Over the past 12 months, APLE's P/B has been as high as 1.19 and as low as 0.79, with a median of 1.05.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. APLE has a P/S ratio of 1.92. This compares to its industry's average P/S of 3.8.
Finally, we should also recognize that APLE has a P/CF ratio of 7.37. 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. APLE's current P/CF looks attractive when compared to its industry's average P/CF of 15.28. Over the past year, APLE's P/CF has been as high as 9.97 and as low as 6.68, with a median of 8.68.
Another great REIT and Equity Trust - Other stock you could consider is Clipper Realty (CLPR - Free Report) , which is a Zacks Rank of #2 (Buy) stock with a Value Score of A.
Furthermore, Clipper Realty holds a P/B ratio of -1.06 and its industry's price-to-book ratio is 1.77. CLPR's P/B has been as high as -1.06, as low as -19.36, with a median of -4.95 over the past 12 months.
These are just a handful of the figures considered in Apple Hospitality REIT and Clipper Realty'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 and CLPR is an impressive value stock right now.