Are Investors Undervaluing Apple Hospitality REIT (APLE) Right Now?

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.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.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) is a stock many investors are watching right now. APLE is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.47. This compares to its industry's average Forward P/E of 15.67. Over the past 52 weeks, APLE's Forward P/E has been as high as 9.93 and as low as 6.69, with a median of 8.74. We should also highlight that APLE has a P/B ratio of 0.94. 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. APLE's current P/B looks attractive when compared to its industry's average P/B of 1.81. APLE's P/B has been as high as 1.19 and as low as 0.79, with a median of 1.02, over the past year.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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. APLE has a P/S ratio of 2.09. This compares to its industry's average P/S of 3.98.Finally, we should also recognize that APLE has a P/CF ratio of 8.04. 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 15.20. Within the past 12 months, APLE's P/CF has been as high as 9.97 and as low as 6.68, with a median of 8.41.Investors could also keep in mind Piedmont Realty Trust, Inc. (PDM), another REIT and Equity Trust - Other stock with a Zacks Rank of #2 (Buy) and Value grade of A.Furthermore, Piedmont Realty Trust, Inc. holds a P/B ratio of 0.69 and its industry's price-to-book ratio is 1.81. PDM's P/B has been as high as 0.84, as low as 0.46, with a median of 0.63 over the past 12 months.Value investors will likely look at more than just these metrics, but the above data helps show that Apple Hospitality REIT and Piedmont Realty Trust, Inc. are likely undervalued currently. And when considering the strength of its earnings outlook, APLE and PDM sticks out as one of the market's strongest value stocks.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apple Hospitality REIT, Inc. (APLE): Free Stock Analysis Report Piedmont Realty Trust, Inc. (PDM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks