SHO vs. NHI: Which Stock Should Value Investors Buy Now?

Core Viewpoint - Investors are evaluating Sunstone Hotel Investors (SHO) and National Health Investors (NHI) for potential undervalued stock opportunities, with a focus on valuation metrics and earnings outlooks [1]. Valuation Metrics - SHO has a forward P/E ratio of 10.04, while NHI has a forward P/E of 15.01, indicating that SHO may be more attractively priced [5]. - The PEG ratio for SHO is 2.51, compared to NHI's PEG ratio of 2.85, suggesting that SHO offers better value when considering expected earnings growth [5]. - SHO's P/B ratio is 1.05, while NHI's P/B ratio is 2.43, further supporting the argument that SHO is undervalued relative to its book value [6]. Earnings Outlook - Both SHO and NHI currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and an improving earnings outlook for both companies [3]. - Despite both companies having solid earnings outlooks, SHO is considered the superior value option based on the discussed valuation figures [7].