Back to top

Image: Shutterstock

Zacks Investment Ideas feature highlights: Toll Brothers, American Woodmark and Unum

Read MoreHide Full Article

For Immediate Release

Chicago, IL – June 26, 2022 – Today, Zacks Investment Ideas feature highlights Toll Brothers (TOL - Free Report) , American Woodmark (AMWD - Free Report) and Unum Group (UNM - Free Report) .

3 Top Stocks Tailored Toward Value-Conscious Investors

Value investing is centered around jumping on stocks trading at a discount, with the idea that the market will eventually ‘catch up’ and recognize their true value, which can lead to serious gains.

After all, we all enjoy a good deal.

And the strategy can become even more lucrative when adding in the Zacks Rank, allowing us to find stocks that analysts have recently become optimistic about.

Three top-ranked stocks trading at enticing valuation levels – Toll Brothers, American Woodmark and Unum Group – could all be considerations for value-focused investors. Let’s take a closer look at each.

American Woodmark

American Woodmark is the third-largest manufacturer of kitchen and bath cabinets. The company has enjoyed positive earnings estimate revisions across the board, helping land the stock into a Zacks Rank #1 (Strong Buy).

The revisions trend has been particularly strong for the company’s upcoming quarterly release.

Shares presently trade at a 10.9X forward earnings multiple, nicely beneath the 11.6X five-year median and highs of 18.7X in 2022.

Further, the current forward price-to-sales ratio works out to be 0.6X, again below the five-year median and the Zacks industry average. The stock sports a Style Score of “A” for Value.

The company has been a big-time earnings performer, exceeding the Zacks Consensus EPS Estimate by an average of nearly 30% across its last four quarters. In its latest release, AMWD penciled in a 100% EPS surprise and reported revenue 5% ahead of expectations.

Unum Group

Unum Group provides disability insurance, long-term care insurance, life insurance, and employee-paid group benefits and related services. Earnings expectations have been raised across all timeframes, with the stock carrying the highly-coveted Zacks Rank #1 (Strong Buy).

Similar to AMWD, Unum Group carries a Style Score of “A” for Value. Shares currently trade at a 6.2X forward earnings multiple, in line with the five-year median and nicely below highs of 8.1X in 2022.

In addition, the forward price-to-sales sits at 0.7X currently, a tick above the five-year median and well below the Zacks industry average.

And for those seeking an income stream, UNM has that covered; shares currently yield 2.9% annually, with the payout growing by a solid 6% over the last five years.

Toll Brothers

Toll Brothers, a Zacks Rank #1 (Strong Buy), builds single-family detached and attached home communities, master-planned luxury residential resort-style golf communities, and more. Analysts have taken their earnings expectations notably higher and have been in full agreement.

Like the stocks above, Toll Brothers carries a Style Score of “A” for Value. Shares presently trade at a 7.2X forward earnings multiple, beneath the 8.4X five-year median and just a few ticks above the 2022 high.

The forward-price-to-sales currently resides at 0.9X, slightly above highs of 0.8X in 2022 but below the Zacks industry average.

Watch for TOL’s upcoming release on August 22nd; the Zacks Consensus EPS Estimate of $2.86 indicates a 21% year-over-year improvement in earnings. The company has posted notably strong results as of late, exceeding earnings expectations by an average of nearly 25% across its last four periods.

Bottom Line

Value investors are always looking for deals, expecting the rest of the crowd to eventually catch onto the discounts and lead to significant gains.

And when you pair this strategy with the Zacks Rank, which is focused on earnings estimate revisions, it’s much easier to find mispriced stocks with great near-term potential.

All three stocks above should be closely monitored by value-focused investors.

Why Haven’t You Looked at Zacks' Top Stocks?

Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.

See Stocks Free >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Unum Group (UNM) - free report >>

Toll Brothers Inc. (TOL) - free report >>

American Woodmark Corporation (AMWD) - free report >>

Published in