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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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Park Hotels & Resorts (PK) is a stock many investors are watching right now. PK is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 6.07, while its industry has an average P/E of 14.85. Over the past 52 weeks, PK's Forward P/E has been as high as 8.29 and as low as 6, with a median of 6.69.
We should also highlight that PK has a P/B ratio of 0.75. The P/B is a method of comparing a stock's market value to 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. PK's P/B has been as high as 1 and as low as 0.74, with a median of 0.84, over the past year.
Finally, investors should note that PK has a P/CF ratio of 4.48. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.77. PK's P/CF has been as high as 9.69 and as low as 4.43, with a median of 5.20, all within the past year.
These are just a handful of the figures considered in Park Hotels & Resorts'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 PK is an impressive value stock right now.
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