TheStreet Ratings Top 10 Rating Changes
Rating Change #7
Pebblebrook Hotel Trust (PEB) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.
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Highlights from the ratings report include:
- PEB's revenue growth has slightly outpaced the industry average of 15.9%. Since the same quarter one year prior, revenues rose by 23.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- PEBBLEBROOK HOTEL TRUST reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, PEBBLEBROOK HOTEL TRUST turned its bottom line around by earning $0.06 versus -$0.28 in the prior year. This year, the market expects an improvement in earnings ($0.14 versus $0.06).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 108.2% when compared to the same quarter one year prior, rising from $5.72 million to $11.92 million.
- Net operating cash flow has significantly increased by 92.27% to $25.08 million when compared to the same quarter last year. In addition, PEBBLEBROOK HOTEL TRUST has also vastly surpassed the industry average cash flow growth rate of 13.51%.
- Powered by its strong earnings growth of 160.00% and other important driving factors, this stock has surged by 26.16% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
Pebblebrook Hotel Trust, through Pebblebrook Hotel, L.P., operates as a real estate investment trust. The company acquires and invests primarily in hotel properties located in the United States. The company has a P/E ratio of 141.6, above the S&P 500 P/E ratio of 17.7. Pebblebrook Hotel has a market cap of $1.46 billion and is part of the financial sector and real estate industry. Shares are up 4.2% year to date as of the close of trading on Tuesday.