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Have you been paying attention to shares of Apple Hospitality REIT (APLE - Free Report) ? Shares have been on the move with the stock up 11.7% over the past month. The stock hit a new 52-week high of $18.45 in the previous session. Apple Hospitality REIT has gained 54.1% since the start of the year compared to the 3.5% move for the Zacks Finance sector and the 9.3% return for the Zacks REIT and Equity Trust - Other industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 5, 2026, Apple Hospitality REIT reported EPS of $0.28 versus consensus estimate of $0.5.
For the current fiscal year, Apple Hospitality REIT is expected to post earnings of $1.7 per share on $1.48 in revenues. This represents a 11.84% change in EPS on a 4.75% change in revenues. For the next fiscal year, the company is expected to earn $1.67 per share on $1.51 in revenues. This represents a year-over-year change of -1.76% and 2.08%, respectively.
Valuation MetricsThough Apple Hospitality REIT has recently hit a 52-week high, what is next for Apple Hospitality REIT? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Apple Hospitality REIT has a Value Score of B. The stock's Growth and Momentum Scores are D and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 10.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 11.9X. On a trailing cash flow basis, the stock currently trades at 11.7X versus its peer group's average of 12.4X. Additionally, the stock has a PEG ratio of 3.37. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Apple Hospitality REIT currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Apple Hospitality REIT meets the list of requirements. Thus, it seems as though Apple Hospitality REIT shares could have potential in the weeks and months to come.
How Does APLE Stack Up to the Competition?Shares of APLE have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Sunstone Hotel Investors, Inc. (SHO - Free Report) . SHO has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of A.
Earnings were strong last quarter. Sunstone Hotel Investors, Inc. beat our consensus estimate by 6.67%, and for the current fiscal year, SHO is expected to post earnings of $0.99 per share on revenue of $984.72 million.
Shares of Sunstone Hotel Investors, Inc. have gained 11.8% over the past month, and currently trade at a forward P/E of 12.78X and a P/CF of 13.98X.
The REIT and Equity Trust - Other industry is in the top 39% of all the industries we have in our universe, so it looks like there are some nice tailwinds for APLE and SHO, even beyond their own solid fundamental situation.