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Is Toll Brothers (TOL) Stock 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Toll Brothers (TOL - Free Report) . TOL 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 6.99, which compares to its industry's average of 9.79. Over the last 12 months, TOL's Forward P/E has been as high as 8.14 and as low as 3.80, with a median of 4.84.
We also note that TOL holds a PEG ratio of 0.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TOL's PEG compares to its industry's average PEG of 0.78. Within the past year, TOL's PEG has been as high as 0.90 and as low as 0.28, with a median of 0.65.
Investors should also recognize that TOL has a P/B ratio of 1.04. 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 1.13. Over the past 12 months, TOL's P/B has been as high as 1.21 and as low as 0.78, with a median of 1.01.
Finally, investors should note that TOL has a P/CF ratio of 4.68. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. TOL's current P/CF looks attractive when compared to its industry's average P/CF of 5.01. Over the past year, TOL's P/CF has been as high as 6.81 and as low as 3.46, with a median of 4.77.
These are only a few of the key metrics included in Toll Brothers's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TOL looks like an impressive value stock at the moment.
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Is Toll Brothers (TOL) Stock 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Toll Brothers (TOL - Free Report) . TOL 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 6.99, which compares to its industry's average of 9.79. Over the last 12 months, TOL's Forward P/E has been as high as 8.14 and as low as 3.80, with a median of 4.84.
We also note that TOL holds a PEG ratio of 0.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TOL's PEG compares to its industry's average PEG of 0.78. Within the past year, TOL's PEG has been as high as 0.90 and as low as 0.28, with a median of 0.65.
Investors should also recognize that TOL has a P/B ratio of 1.04. 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 1.13. Over the past 12 months, TOL's P/B has been as high as 1.21 and as low as 0.78, with a median of 1.01.
Finally, investors should note that TOL has a P/CF ratio of 4.68. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. TOL's current P/CF looks attractive when compared to its industry's average P/CF of 5.01. Over the past year, TOL's P/CF has been as high as 6.81 and as low as 3.46, with a median of 4.77.
These are only a few of the key metrics included in Toll Brothers's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TOL looks like an impressive value stock at the moment.