Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Hospitality Properties Trust (NASDAQ:HPT) due to its excellent fundamentals in more than one area. HPT is a well-regarded dividend payer with a a great history of performance, trading at a great value. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Hospitality Properties Trust here.
Undervalued with proven track record and pays a dividend
Over the past year, HPT has grown its earnings by 54.2%, with its most recent figure exceeding its annual average over the past five years. Not only did HPT outperformed its past performance, its growth also exceeded the REITs industry expansion, which generated a 5.8% earnings growth. This is an notable feat for the company. HPT's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of HPT's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the reits industry, HPT is also trading below its peers, relative to earnings generated. This bolsters the proposition that HPT's price is currently discounted.
HPT is considered one of the top dividend payers in the market, and its profitability ensures that dividends are well-covered by its net income.
Next Steps:
For Hospitality Properties Trust, there are three essential factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for HPT’s future growth? Take a look at our free research report of analyst consensus for HPT’s outlook.
- Financial Health: Are HPT’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HPT? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.