Playa Hotels & Resorts (PLYA) closed at $9.07 in the latest trading session, marking a +1.11% move from the prior day. This change outpaced the S&P 500’s 0.53% loss on the day.
Heading into today, shares of the developer and operator of all-inclusive resorts had gained 0.22% over the past month, lagging the Consumer Discretionary sector’s gain of 2.03% and the S&P 500’s gain of 4.86% in that time.
Investors will be hoping for strength from Playa Hotels & Resorts as it approaches its next earnings release. The company is expected to report EPS of $0.12, down 20% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $236.86 million, up 7.04% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.59 per share and revenue of $944.55 million. These totals would mark changes of +18% and +10.31%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Playa Hotels & Resorts. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.91% higher within the past month. Playa Hotels & Resorts currently has a Zacks Rank of #2 (Buy).
Investors should also note Playa Hotels & Resorts’s current valuation metrics, including its Forward P/E ratio of 15.2. For comparison, its industry has an average Forward P/E of 19.79, which means Playa Hotels & Resorts is trading at a discount to the group.
Also, we should mention that PLYA has a PEG ratio of 4.43. 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. The Hotels and Motels was holding an average PEG ratio of 1.9 at yesterday’s closing price.
The Hotels and Motels industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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