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Are These Construction Stocks Undervalued Right Now?
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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Thor Industries (THO - Free Report) is a stock many investors are watching right now. THO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.30, which compares to its industry's average of 8.43. THO's Forward P/E has been as high as 16.36 and as low as 5.86, with a median of 9.85, all within the past year.
We should also highlight that THO has a P/B ratio of 1.61. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.44. Over the past 12 months, THO's P/B has been as high as 3.25 and as low as 1.50, with a median of 2.17.
Finally, our model also underscores that THO has a P/CF ratio of 4.83. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. THO's P/CF compares to its industry's average P/CF of 7.49. THO's P/CF has been as high as 13.90 and as low as 4.50, with a median of 7.34, all within the past year.
Investors could also keep in mind Winnebago Industries (WGO - Free Report) , an Building Products - Mobile Homes and RV Builders stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Winnebago Industries sports a P/B ratio of 1.84 as well; this compares to its industry's price-to-book ratio of 2.44. In the past 52 weeks, WGO's P/B has been as high as 3.12, as low as 1.75, with a median of 2.29.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Thor Industries and Winnebago Industries are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, THO and WGO feels like a great value stock at the moment.
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Are These Construction Stocks Undervalued Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Thor Industries (THO - Free Report) is a stock many investors are watching right now. THO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.30, which compares to its industry's average of 8.43. THO's Forward P/E has been as high as 16.36 and as low as 5.86, with a median of 9.85, all within the past year.
We should also highlight that THO has a P/B ratio of 1.61. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.44. Over the past 12 months, THO's P/B has been as high as 3.25 and as low as 1.50, with a median of 2.17.
Finally, our model also underscores that THO has a P/CF ratio of 4.83. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. THO's P/CF compares to its industry's average P/CF of 7.49. THO's P/CF has been as high as 13.90 and as low as 4.50, with a median of 7.34, all within the past year.
Investors could also keep in mind Winnebago Industries (WGO - Free Report) , an Building Products - Mobile Homes and RV Builders stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Winnebago Industries sports a P/B ratio of 1.84 as well; this compares to its industry's price-to-book ratio of 2.44. In the past 52 weeks, WGO's P/B has been as high as 3.12, as low as 1.75, with a median of 2.29.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Thor Industries and Winnebago Industries are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, THO and WGO feels like a great value stock at the moment.