Sunstone Hotel Investors Inc (NYSE: SHO)’s stock price has increased by 1.92 compared to its previous closing price of 10.92. However, the company has seen a 0.45% increase in its stock price over the last five trading sessions. Zacks Investment Research reported 2024-03-14 that Investors interested in stocks from the REIT and Equity Trust – Other sector have probably already heard of Empire State Realty Trust (ESRT) and Sunstone Hotel Investors (SHO). But which of these two companies is the best option for those looking for undervalued stocks?
Is It Worth Investing in Sunstone Hotel Investors Inc (NYSE: SHO) Right Now?
Sunstone Hotel Investors Inc (NYSE: SHO) has a higher price-to-earnings ratio of 11.89x compared to its average ratio, The 36-month beta value for SHO is at 1.21. Analysts have varying views on the stock, with 2 analysts rating it as a “buy,” 1 rating it as “overweight,” 8 as “hold,” and 4 as “sell.”
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The public float for SHO is 201.31M, and currently, shorts hold a 6.17% of that float. The average trading volume for SHO on March 28, 2024 was 1.93M shares.
SHO’s Market Performance
SHO stock saw an increase of 0.45% in the past week, with a monthly gain of 0.36% and a quarterly increase of 1.27%. The volatility ratio for the week is 1.86%, and the volatility levels for the last 30 days are 1.89% for Sunstone Hotel Investors Inc (SHO). The simple moving average for the last 20 days is -0.18% for SHO stock, with a simple moving average of 11.14% for the last 200 days.
Analysts’ Opinion of SHO
Many brokerage firms have already submitted their reports for SHO stocks, with JP Morgan repeating the rating for SHO by listing it as a “Neutral.” The predicted price for SHO in the upcoming period, according to JP Morgan is $10 based on the research report published on December 14, 2023 of the previous year 2023.
Wells Fargo, on the other hand, stated in their research note that they expect to see SHO reach a price target of $9.50, previously predicting the price at $10. The rating they have provided for SHO stocks is “Underweight” according to the report published on December 08th, 2023.
SHO Trading at 1.84% from the 50-Day Moving Average
After a stumble in the market that brought SHO to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -3.97% of loss for the given period.
Volatility was left at 1.89%, however, over the last 30 days, the volatility rate increased by 1.86%, as shares sank -0.45% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +4.12% upper at present.
During the last 5 trading sessions, SHO rose by +0.45%, which changed the moving average for the period of 200-days by +4.41% in comparison to the 20-day moving average, which settled at $11.15. In addition, Sunstone Hotel Investors Inc saw 3.73% in overturn over a single year, with a tendency to cut further gains.
Stock Fundamentals for SHO
Current profitability levels for the company are sitting at:
- 0.12 for the present operating margin
- 0.43 for the gross margin
The net margin for Sunstone Hotel Investors Inc stands at 0.21. The total capital return value is set at 0.04. Equity return is now at value 9.71, with 6.62 for asset returns.
Based on Sunstone Hotel Investors Inc (SHO), the company’s capital structure generated 0.27 points at debt to capital in total, while cash flow to debt ratio is standing at 0.24. The debt to equity ratio resting at 0.38. The interest coverage ratio of the stock is 2.44.
Currently, EBITDA for the company is 244.97 million with net debt to EBITDA at 1.34. When we switch over and look at the enterprise to sales, we see a ratio of 2.64. The receivables turnover for the company is 31.61for trailing twelve months and the total asset turnover is 0.31.
Conclusion
In conclusion, Sunstone Hotel Investors Inc (SHO) has had a better performance lately. Opinion on the stock among analysts is mixed, with some giving it a “buy” rating and others a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
