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Hospitality Properties Trust (NASDAQ:HPT) Has Attractive Fundamentals

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I've been keeping an eye on Hospitality Properties Trust (NASDAQ:HPT) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe HPT has a lot to offer. Basically, it is a well-regarded dividend-paying company with a strong track record of performance, trading at a great value. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, 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 28%, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, HPT also outperformed its industry, which delivered a growth of 16%. 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. Also, relative to the rest of its peers with similar levels of earnings, HPT's share price is trading below the group's average. This bolsters the proposition that HPT's price is currently discounted.

NasdaqGS:HPT Income Statement, July 17th 2019
NasdaqGS:HPT Income Statement, July 17th 2019

HPT's high dividend payments make it one of the best dividend stocks on the market, and it has also been able to maintain it at a level in which net income is able to cover dividend payments.

NasdaqGS:HPT Historical Dividend Yield, July 17th 2019
NasdaqGS:HPT Historical Dividend Yield, July 17th 2019

Next Steps:

For Hospitality Properties Trust, there are three fundamental factors you should look at:

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  1. 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.

  2. 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.

  3. 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!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.