Should Value Investors Buy RLJ Lodging Trust (RLJ) Stock?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.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.One company to watch right now is RLJ Lodging Trust (RLJ). RLJ is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 6.21 right now. For comparison, its industry sports an average P/E of 14.85. RLJ's Forward P/E has been as high as 7.21 and as low as 5.54, with a median of 6.21, all within the past year.Investors should also note that RLJ holds a PEG ratio of 1.98. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RLJ's industry has an average PEG of 2.05 right now. Within the past year, RLJ's PEG has been as high as 2.03 and as low as 0.70, with a median of 0.78.Another valuation metric that we should highlight is RLJ's P/B ratio of 0.78. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.75. Over the past year, RLJ's P/B has been as high as 0.96 and as low as 0.70, with a median of 0.78.Finally, our model also underscores that RLJ has a P/CF ratio of 5.34. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. RLJ's current P/CF looks attractive when compared to its industry's average P/CF of 15.74. RLJ's P/CF has been as high as 6.48 and as low as 4.74, with a median of 5.36, all within the past year.Value investors will likely look at more than just these metrics, but the above data helps show that RLJ Lodging Trust is likely undervalued currently. And when considering the strength of its earnings outlook, RLJ sticks out at as one of the market's strongest value stocks.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks 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 RLJ Lodging Trust (RLJ): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks