Stocks

Bull Of The Day: Braemar Hotels and Resorts (BHR)

Braemar Hotels and Resorts (BHR) is a Zacks  Rank #2 (Buy) and is a luxury hotel owner and operator.  This REIT doesn’t pay a dividend, but there are several reasons why I like it.  The luxury space isn’t going to impact inflation as much as the non-luxury segment.  Let’s take a deeper look at this stock in this Bull of the Day article.

Description

Braemar Hotels & Resorts Inc. operates as a real estate investment trust. It focused on investing in luxury hotels and resorts. Braemar Hotels & Resorts Inc., formerly known as Ashford Hospitality Prime is based in Texas, United States.

Earnings History

When I look at a stock, the first thing I do is look to see if the company is beating the number.  This tells me right away where the market’s expectations have been for the company and how management has communicated to the market.  A stock that consistently beats has management communicating expectations to Wall Street that can be achieved.  That is what you want to see.

For BHR, I see a great history of beating the Zacks Consensus Estimate.  There are four beats over the last four quarters. 

The average positive earnings surprise over the last fours quarters works out to be 75%, which means that they are posting results that are above expectations. 

There was a monster beat last quarter (185%), which skewed the average up quite a bit.  Still, the company beats and that helps boost estimates higher and higher.

Earnings Estimates Revisions

The Zacks Rank tells us which stocks are seeing earnings estimates move higher.  For BHR, I see estimates moving higher.

Over the last 60 days, I see a few increases.

This quarter has remained at 9 cents.

Next quarter has moved from 11 cents to 12 cents.

The full-year number has increased from $0.44 to $0.46 over the last 60 days.

Next year is at $1.01 and that is up from $0.76 over the same time horizon.

Positive movement in earnings estimates like that is why this stock is a Zacks Rank #2 (Buy).

Valuation

The valuation for BHR is very reasonable.  I see an 11x forward earnings multiple and sales growth in the most recent quarter coming in at an amazing 653%.  The price to book multiple of 0.76x means that you are acquiring the stock for less than the price of all the assets.  Value Investors will love to see that price to book multiple below 1x. 

Chart

BRAEMAR HOTELS & RESORTS INC. Price, Consensus and EPS Surprise

BRAEMAR HOTELS & RESORTS INC. Price, Consensus and EPS Surprise

BRAEMAR HOTELS & RESORTS INC. price-consensus-eps-surprise-chart | BRAEMAR HOTELS & RESORTS INC. Quote


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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