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Is Toll Brothers (TOL) Stock Undervalued Right Now?
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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.
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.
Toll Brothers (TOL - Free Report) is a stock many investors are watching right now. TOL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 7.49. This compares to its industry's average Forward P/E of 7.79. Over the past year, TOL's Forward P/E has been as high as 15.40 and as low as 7.11, with a median of 10.17.
Investors will also notice that TOL has a PEG ratio of 0.57. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TOL's industry has an average PEG of 1.11 right now. Over the past 52 weeks, TOL's PEG has been as high as 5.10 and as low as 0.41, with a median of 0.71.
Another valuation metric that we should highlight is TOL's P/B ratio of 1.40. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.63. Over the past 12 months, TOL's P/B has been as high as 1.68 and as low as 1.01, with a median of 1.32.
Value investors will likely look at more than just these metrics, but the above data helps show that Toll Brothers is likely undervalued currently. And when considering the strength of its earnings outlook, TOL sticks out at as one of the market's strongest value stocks.
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Is Toll Brothers (TOL) Stock Undervalued Right Now?
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.
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.
Toll Brothers (TOL - Free Report) is a stock many investors are watching right now. TOL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 7.49. This compares to its industry's average Forward P/E of 7.79. Over the past year, TOL's Forward P/E has been as high as 15.40 and as low as 7.11, with a median of 10.17.
Investors will also notice that TOL has a PEG ratio of 0.57. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TOL's industry has an average PEG of 1.11 right now. Over the past 52 weeks, TOL's PEG has been as high as 5.10 and as low as 0.41, with a median of 0.71.
Another valuation metric that we should highlight is TOL's P/B ratio of 1.40. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.63. Over the past 12 months, TOL's P/B has been as high as 1.68 and as low as 1.01, with a median of 1.32.
Value investors will likely look at more than just these metrics, but the above data helps show that Toll Brothers is likely undervalued currently. And when considering the strength of its earnings outlook, TOL sticks out at as one of the market's strongest value stocks.