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Should Value Investors Buy City Office REIT (CIO) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is City Office REIT (CIO - Free Report) . CIO is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.25. This compares to its industry's average Forward P/E of 15.58. Over the past 52 weeks, CIO's Forward P/E has been as high as 6.25 and as low as 3.86, with a median of 4.77.
CIO is also sporting a PEG ratio of 1.04. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CIO's PEG compares to its industry's average PEG of 2.00. Over the last 12 months, CIO's PEG has been as high as 1.04 and as low as 0.64, with a median of 0.80.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CIO has a P/S ratio of 1.66. This compares to its industry's average P/S of 3.82.
If you're looking for another solid REIT and Equity Trust - Other value stock, take a look at Host Hotels & Resorts (HST - Free Report) . HST is a Zacks Rank of #2 (Buy) stock with a Value score of A.
Host Hotels & Resorts is trading at a forward earnings multiple of 7.95 at the moment, with a PEG ratio of 1.65. This compares to its industry's average P/E of 15.58 and average PEG ratio of 2.00.
HST's Forward P/E has been as high as 9.77 and as low as 6.79, with a median of 8.51. During the same time period, its PEG ratio has been as high as 1.67, as low as 1.40, with a median of 1.57.
Host Hotels & Resorts sports a P/B ratio of 1.61 as well; this compares to its industry's price-to-book ratio of 1.80. In the past 52 weeks, HST's P/B has been as high as 1.99, as low as 1.32, with a median of 1.73.
These are only a few of the key metrics included in City Office REIT and Host Hotels & Resorts strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CIO and HST look like an impressive value stock at the moment.
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Should Value Investors Buy City Office REIT (CIO) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is City Office REIT (CIO - Free Report) . CIO is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.25. This compares to its industry's average Forward P/E of 15.58. Over the past 52 weeks, CIO's Forward P/E has been as high as 6.25 and as low as 3.86, with a median of 4.77.
CIO is also sporting a PEG ratio of 1.04. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CIO's PEG compares to its industry's average PEG of 2.00. Over the last 12 months, CIO's PEG has been as high as 1.04 and as low as 0.64, with a median of 0.80.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CIO has a P/S ratio of 1.66. This compares to its industry's average P/S of 3.82.
If you're looking for another solid REIT and Equity Trust - Other value stock, take a look at Host Hotels & Resorts (HST - Free Report) . HST is a Zacks Rank of #2 (Buy) stock with a Value score of A.
Host Hotels & Resorts is trading at a forward earnings multiple of 7.95 at the moment, with a PEG ratio of 1.65. This compares to its industry's average P/E of 15.58 and average PEG ratio of 2.00.
HST's Forward P/E has been as high as 9.77 and as low as 6.79, with a median of 8.51. During the same time period, its PEG ratio has been as high as 1.67, as low as 1.40, with a median of 1.57.
Host Hotels & Resorts sports a P/B ratio of 1.61 as well; this compares to its industry's price-to-book ratio of 1.80. In the past 52 weeks, HST's P/B has been as high as 1.99, as low as 1.32, with a median of 1.73.
These are only a few of the key metrics included in City Office REIT and Host Hotels & Resorts strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CIO and HST look like an impressive value stock at the moment.