At $6 a share, you could consider Ashford Hospitality Trust Inc (NYSE:AHT) an undervalued stock. Of course, to gauge that, we need to look at how the company performed in the last few months and also what is in store for its future.
Is AHT Undervalued Stock?
Ashford Hospitality Trust is in the business of owning and leasing real-estate—anything from commercial to apartment buildings.
In the last few months, AHT stock has gained a lot of attention because of its volatile movement. In early July it hit a high of $8.59, but then on August 2nd, it dropped dramatically from $7.92 to $6.52. Since then it has experienced ups and downs but has consistently been swapping hands. At the time of writing, it is valued at $6.06.
The question is, is this the perfect example of an undervalued stock? Such high levels of volatility present what could be a ‘steal’ of a price, according to Simply Wall St.
Revenue Increase Expectations
One potential for Ashford is an expected profit of 18% over the next few years. And as most investors will tell you, penny stock investing offers greater reward potential over time. Best to be in this for the long haul, especially if you want to see a serious return on investment.
It looks like higher cash flow is on the cards for the stock, through its upcoming ERFP program. This could mean a higher share valuation in time.
Undervalued Stock Going Down
But what about that drop in August? Well, the company released its Q2 results and announced a revenue below expectations of -22.22%. As stated, shares fell dramatically at that time and have yet to recover. But from such highs, as experienced only four months ago, one can’t help but see the potential that lies in wake for this company.
Do you think Ashford is an undervalued stock at the moment?
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