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Is Thor Industries (THO) a Great Value Stock 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.
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 company value investors might notice is Thor Industries (THO - Free Report) . 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 6.87, which compares to its industry's average of 9.17. THO's Forward P/E has been as high as 16.36 and as low as 6.37, with a median of 10.24, all within the past year.
We should also highlight that THO has a P/B ratio of 1.78. 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 stock's P/B looks attractive against its industry's average P/B of 2.72. Within the past 52 weeks, THO's P/B has been as high as 3.25 and as low as 1.66, with a median of 2.26.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. THO has a P/S ratio of 0.36. This compares to its industry's average P/S of 0.54.
Finally, we should also recognize that THO has a P/CF ratio of 5.34. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.60. Over the past year, THO's P/CF has been as high as 13.90 and as low as 5, with a median of 7.67.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Thor Industries is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, THO feels like a great value stock at the moment.
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Is Thor Industries (THO) a Great Value Stock 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.
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 company value investors might notice is Thor Industries (THO - Free Report) . 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 6.87, which compares to its industry's average of 9.17. THO's Forward P/E has been as high as 16.36 and as low as 6.37, with a median of 10.24, all within the past year.
We should also highlight that THO has a P/B ratio of 1.78. 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 stock's P/B looks attractive against its industry's average P/B of 2.72. Within the past 52 weeks, THO's P/B has been as high as 3.25 and as low as 1.66, with a median of 2.26.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. THO has a P/S ratio of 0.36. This compares to its industry's average P/S of 0.54.
Finally, we should also recognize that THO has a P/CF ratio of 5.34. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.60. Over the past year, THO's P/CF has been as high as 13.90 and as low as 5, with a median of 7.67.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Thor Industries is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, THO feels like a great value stock at the moment.