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Are Investors Undervaluing Two Harbors Investments (TWO) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Two Harbors Investments (TWO - Free Report) . TWO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.56 right now. For comparison, its industry sports an average P/E of 8.43. Over the last 12 months, TWO's Forward P/E has been as high as 10.54 and as low as 1.88, with a median of 7.86.
Another notable valuation metric for TWO is its P/B ratio of 0.85. 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 0.93. Over the past year, TWO's P/B has been as high as 1.08 and as low as 0.18, with a median of 0.78.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Two Harbors Investments is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TWO feels like a great value stock at the moment.
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Are Investors Undervaluing Two Harbors Investments (TWO) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Two Harbors Investments (TWO - Free Report) . TWO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.56 right now. For comparison, its industry sports an average P/E of 8.43. Over the last 12 months, TWO's Forward P/E has been as high as 10.54 and as low as 1.88, with a median of 7.86.
Another notable valuation metric for TWO is its P/B ratio of 0.85. 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 0.93. Over the past year, TWO's P/B has been as high as 1.08 and as low as 0.18, with a median of 0.78.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Two Harbors Investments is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TWO feels like a great value stock at the moment.