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Should Value Investors Buy Thor Industries (THO) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Thor Industries (THO - Free Report) . THO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.04, while its industry has an average P/E of 11.66. Over the last 12 months, THO's Forward P/E has been as high as 13.99 and as low as 7.03, with a median of 9.86.
Investors should also recognize that THO has a P/B ratio of 1.83. Investors use the P/B ratio to look at a stock's market value versus 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 2.23. THO's P/B has been as high as 4.02 and as low as 1.34, with a median of 2.63, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. THO has a P/S ratio of 0.45. This compares to its industry's average P/S of 1.02.
Finally, investors should note that THO has a P/CF ratio of 8.60. 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 current P/CF looks attractive when compared to its industry's average P/CF of 10.91. Over the past 52 weeks, THO's P/CF has been as high as 13.21 and as low as 6.31, with a median of 9.35.
Value investors will likely look at more than just these metrics, but the above data helps show that Thor Industries is likely undervalued currently. And when considering the strength of its earnings outlook, THO sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Thor Industries (THO) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Thor Industries (THO - Free Report) . THO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.04, while its industry has an average P/E of 11.66. Over the last 12 months, THO's Forward P/E has been as high as 13.99 and as low as 7.03, with a median of 9.86.
Investors should also recognize that THO has a P/B ratio of 1.83. Investors use the P/B ratio to look at a stock's market value versus 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 2.23. THO's P/B has been as high as 4.02 and as low as 1.34, with a median of 2.63, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. THO has a P/S ratio of 0.45. This compares to its industry's average P/S of 1.02.
Finally, investors should note that THO has a P/CF ratio of 8.60. 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 current P/CF looks attractive when compared to its industry's average P/CF of 10.91. Over the past 52 weeks, THO's P/CF has been as high as 13.21 and as low as 6.31, with a median of 9.35.
Value investors will likely look at more than just these metrics, but the above data helps show that Thor Industries is likely undervalued currently. And when considering the strength of its earnings outlook, THO sticks out at as one of the market's strongest value stocks.