Chatham Lodging Trust

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Chatham Lodging Trust maintains a solid balance sheet, with Moody's metrics implying a Baa2 investment-grade rating. Due to sector cyclicality and high interest rates, CLDT's adjusted credit rating is Ba1, reflecting elevated risk versus balance-sheet strength. CLDT.PR.A preferred stock yields 8.71% but, with an implied Ba3 rating, carries additional risk compared to investment-grade REIT preferreds.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Chatham Lodging Trust is rated Buy, offering a solid margin of safety as recovery continues and leverage remains low. CLDT benefits from industry-leading EBITDA margins, strong RevPAR growth, and disciplined cost control, with further upside from portfolio rebalancing and limited supply growth. Guidance calls for 1.5%-3% RevPAR growth and $1.28-$1.34 adjusted FFO per share, supporting a sustainable ~3% dividend yield with a low payout ratio.

KSS, LCUT, MATV, UGP and CLDT stand out with attractive EV-to-EBITDA ratios and strong earnings outlook.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.