6 Undervalued Hotels, Restaurants & Leisure Stocks for Friday, July 03

By Tudor Pop
July 03, 2026
Diamond graphic indicating best value stocks in their industry
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Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 stocks made the list for top value stocks in the Hotels, Restaurants & Leisure industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Hotels, Restaurants & Leisure Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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6 Undervalued Hotels, Restaurants & Leisure Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 6 undervalued stocks in the Hotels, Restaurants & Leisure industry for Monday, July 06, 2026. Let’s take a closer look at their individual scores to see how they measure up against each other and the Hotels, Restaurants & Leisure industry median.

Company Ticker Price/Sales Price/Earnings EV/EBITDA Shareholder Yield Price/Book Value Price/Free Cash Flow Value Grade
Accel Entertainment, Inc. ACEL 0.79 21.3 6.2 4.0% 3.82 16.8 B
Bally's Corporation BALY 0.30 na 15.8 (8.7%) 0.91 na B
BJ's Restaurants, Inc. BJRI 0.91 29.5 9.8 6.7% 3.32 15.8 B
Carnival Corporation Ltd. CCL 1.38 12.8 8.3 (3.2%) 2.95 13.5 B
PENN Entertainment, Inc. PENN 0.44 na 15.7 12.4% 1.53 na A
Yum China Holdings, Inc. YUMC 1.26 16.1 10.1 8.9% 2.68 26.7 B

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Accel Entertainment, Inc.’s Value Grade

Value Grade:

Metric Score ACEL Industry Median
Price/Sales 26 0.79 1.40
Price/Earnings 54 21.3 24.2
EV/EBITDA 16 6.2 12.9
Shareholder Yield 20 4.0% 1.1%
Price/Book Value 71 3.82 2.95
Price/Free Cash Flow 43 16.8 19.9

Accel Entertainment, Inc., together with its subsidiaries, operates as a distributed gaming operator in the United States. It engages in the installation, maintenance, and operation of gaming terminals; redemption devices that disburse winnings and contain automated teller machine (ATM) functionality; and other amusement devices in authorized non-casino locations, such as restaurants, bars, taverns, convenience stores, liquor stores, truck stops, and grocery stores. The company also designs and manufactures gaming terminals and related equipment, as well as offers turnkey and full-service gaming solutions to bars, restaurants, convenience stores, truck stops, and fraternal and veteran establishments. In addition, it operates stand-alone ATMs in gaming and non-gaming locations, as well as amusement devices, including jukeboxes, dartboards, pool tables, and other entertainment related equipment; and develops brick-and-mortar casinos that serve local gaming markets and horse racing venues. Accel Entertainment, Inc. is headquartered in Burr Ridge, Illinois.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Accel Entertainment, Inc. has a Value Score of 68, which is considered to be undervalued.

When you look at Accel Entertainment, Inc.’s price-to-sales ratio at 0.79 compared to the industry median at 1.40, this company has a lower price relative to revenue compared to its peers. This could make Accel Entertainment, Inc.’s stock more attractive for value investors.

Accel Entertainment, Inc.’s price-earnings ratio is 21.30 compared to the industry median at 24.20. This means it has a lower share price relative to earnings compared to its peers. This could make Accel Entertainment, Inc. more attractive for value investors.

Now, let’s assess Accel Entertainment, Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 6.2, when compared to the industry median of 12.9, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Accel Entertainment, Inc.’s shareholder yield is higher than its industry median ratio of 1.10%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Accel Entertainment, Inc.’s price-to-book ratio is higher than its industry median ratio of 2.95. This could make Accel Entertainment, Inc. less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Accel Entertainment, Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Accel Entertainment, Inc.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 19.90. This could make Accel Entertainment, Inc. more attractive because the lower P/FCF ratio indicates that Accel Entertainment, Inc. is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

Bally's Corporation’s Value Grade

Value Grade:

Metric Score BALY Industry Median
Price/Sales 12 0.30 1.40
Price/Earnings na na 24.2
EV/EBITDA 64 15.8 12.9
Shareholder Yield 73 (8.7%) 1.1%
Price/Book Value 19 0.91 2.95
Price/Free Cash Flow na na 19.9

Bally’s Corporation is a fast-growing global entertainment brand with 19 casinos across 11 US states and one casino in Newcastle, UK, along with a golf course in New York and a horse racetrack in Colorado. Bally’s also owns Bally Bet, a first-in-class sports betting and igaming platform, licensed in 13 jurisdictions in North America. Bally’s holds a majority interest in Bally’s Intralot S.A. a leading lottery solutions supplier and igaming operator. Bally's casino operations include approximately 17,700 slot machines, 630 table games, and 3,950 hotel rooms. Bally’s also has rights to developable land in Las Vegas at the site of the former Tropicana Las Vegas, has been awarded a license to build a full-scale casino and resort in The Bronx, New York and is developing an integrated destination resort in Chicago, Illinois. Bally’s has approximately 10,800 employees across the world, recognized for their innovation, energy, and dedication to creating thrilling gaming experiences. Bally's Corporation was incorporated in 2004 and is based in Providence, United States.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Bally's Corporation has a Value Score of 61, which is considered to be undervalued.

Bally's Corporation’s price-to-book ratio is higher than its peers. This could make Bally's Corporation less attractive for value investors when compared to the industry median at 2.95.

You can read more about Bally's Corporation’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

BJ's Restaurants, Inc.’s Value Grade

Value Grade:

Metric Score BJRI Industry Median
Price/Sales 29 0.91 1.40
Price/Earnings 67 29.5 24.2
EV/EBITDA 35 9.8 12.9
Shareholder Yield 10 6.7% 1.1%
Price/Book Value 67 3.32 2.95
Price/Free Cash Flow 40 15.8 19.9

BJ's Restaurants, Inc. operates full-service restaurants in the United States. Its restaurants offer pizzas, crafts and other beers, appetizers, entrées, wings, pastas, sandwiches, specialty salads, and Pizookie desserts. The company was formerly known as Chicago Pizza & Brewery, Inc. and changed its name to BJ's Restaurants, Inc. in August 2004. BJ's Restaurants, Inc. was founded in 1978 and is based in Huntington Beach, California.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

BJ's Restaurants, Inc. has a Value Score of 63, which is considered to be undervalued.

BJ's Restaurants, Inc.’s price-earnings ratio is 29.5 compared to the industry median at 24.2. This means that it has a higher price relative to its earnings compared to its peers. This makes BJ's Restaurants, Inc. less attractive for value investors.

BJ's Restaurants, Inc.’s price-to-book ratio is lower than its peers. This could make BJ's Restaurants, Inc. more attractive for value investors when compared to the industry median at 2.95.

You can read more about BJ's Restaurants, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Carnival Corporation Ltd.’s Value Grade

Value Grade:

Metric Score CCL Industry Median
Price/Sales 38 1.38 1.40
Price/Earnings 28 12.8 24.2
EV/EBITDA 26 8.3 12.9
Shareholder Yield 64 (3.2%) 1.1%
Price/Book Value 63 2.95 2.95
Price/Free Cash Flow 33 13.5 19.9

Carnival Corporation Ltd., a cruise company, provides leisure travel services in North America, Australia, Europe, and internationally. The company operates through four segments: North America Cruise Operations, Europe Cruise Operations, Cruise Support, and Tour and Other. It operates port destinations and islands, as well as owns and operates hotels, lodges, glass-domed railcars, and motorcoaches. The company offers its services under the AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O; Cruises (Australia), P&O; Cruises (UK), Princess Cruises, and Seabourn brands. It sells its cruises through travel agents, tour operators, vacation planners, websites, and onboard future cruise consultants. Carnival Corporation Ltd. was founded in 1972 and is headquartered in Miami, Florida.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Carnival Corporation Ltd. has a Value Score of 61, which is considered to be undervalued.

Carnival Corporation Ltd.’s price-earnings ratio is 12.8 compared to the industry median at 24.2. This means that it has a lower price relative to its earnings compared to its peers. This makes Carnival Corporation Ltd. more attractive for value investors.

Carnival Corporation Ltd.’s price-to-book ratio is lower than its peers. This could make Carnival Corporation Ltd. more attractive for value investors when compared to the industry median at 2.95.

You can read more about Carnival Corporation Ltd.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

PENN Entertainment, Inc.’s Value Grade

Value Grade:

Metric Score PENN Industry Median
Price/Sales 17 0.44 1.40
Price/Earnings na na 24.2
EV/EBITDA 64 15.7 12.9
Shareholder Yield 3 12.4% 1.1%
Price/Book Value 40 1.53 2.95
Price/Free Cash Flow na na 19.9

PENN Entertainment, Inc., together with its subsidiaries, provides integrated entertainment, sports content, and casino gaming experiences in the United States and internationally. The company operates through five segments: Northeast, South, West, Midwest, and Interactive. It operates a portfolio of casinos, racetracks, and online sports betting; online gaming portfolio, such as theScore Bet, an online sportsbook; theScore Casino, a stand-alone iCasino website and app; Hollywood Casino, an iCasino and theScore Bet website and app; PENN Game Studios, its in-house iCasino and social gaming content studio; and PENN Play, a customer loyalty program. The company also engages in gaming operations, including slot machines and table games; food and beverage offerings; and hotel visitation. It offers its products under the Ameristar, Argosy, Boomtown, Hollywood Casino, Hollywood Gaming, L’Auberge, M Resort, PENN Entertainment, and PENN Play, as well as theScore, theScore Bet, and theScore esports brands. The company was formerly known as Penn National Gaming, Inc. and changed its name to PENN Entertainment, Inc. in August 2022. PENN Entertainment, Inc. was founded in 1972 and is based in Wyomissing, Pennsylvania.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

PENN Entertainment, Inc. has a Value Score of 82, which is considered to be undervalued.

PENN Entertainment, Inc.’s price-to-book ratio is higher than its peers. This could make PENN Entertainment, Inc. less attractive for value investors when compared to the industry median at 2.95.

You can read more about PENN Entertainment, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Yum China Holdings, Inc.’s Value Grade

Value Grade:

Metric Score YUMC Industry Median
Price/Sales 36 1.26 1.40
Price/Earnings 39 16.1 24.2
EV/EBITDA 37 10.1 12.9
Shareholder Yield 6 8.9% 1.1%
Price/Book Value 60 2.68 2.95
Price/Free Cash Flow 61 26.7 19.9

Yum China Holdings, Inc. owns, operates, and franchises restaurants in the People’s Republic of China. The company operates through two KFC, Pizza Hut, and All Other segments. It operates restaurants under the KFC, Pizza Hut, Taco Bell, Lavazza, Little Sheep, and Huang Ji Huang concepts. The company also offers online food delivery services. Yum China Holdings, Inc. was founded in 1987 and is headquartered in Shanghai, the People’s Republic of China.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Yum China Holdings, Inc. has a Value Score of 66, which is considered to be undervalued.

Yum China Holdings, Inc.’s price-earnings ratio is 16.1 compared to the industry median at 24.2. This means that it has a lower price relative to its earnings compared to its peers. This makes Yum China Holdings, Inc. more attractive for value investors.

Yum China Holdings, Inc.’s price-to-book ratio is higher than its peers. This could make Yum China Holdings, Inc. less attractive for value investors when compared to the industry median at 2.95.

You can read more about Yum China Holdings, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

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Other Hotels, Restaurants & Leisure Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Hotels, Restaurants & Leisure stocks as well as other industrys.

Choosing Which of the 6 Best Hotels, Restaurants & Leisure Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

  • Accel Entertainment, Inc. stock has a Value Grade of B.
  • Bally's Corporation stock has a Value Grade of B.
  • BJ's Restaurants, Inc. stock has a Value Grade of B.
  • Carnival Corporation Ltd. stock has a Value Grade of B.
  • PENN Entertainment, Inc. stock has a Value Grade of A.
  • Yum China Holdings, Inc. stock has a Value Grade of B.

Now that you have a bit more background about each of the 6 undervalued stocks in the Hotels, Restaurants & Leisure industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

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Additional Resources About Hotels, Restaurants & Leisure Stocks

Want to learn more about Hotels, Restaurants & Leisure stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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