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Is Toll Brothers (TOL) a Great Value Stock 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is Toll Brothers (TOL - Free Report) . TOL is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.50. This compares to its industry's average Forward P/E of 10.35. Over the past year, TOL's Forward P/E has been as high as 8.19 and as low as 4.38, with a median of 6.98.
TOL is also sporting a PEG ratio of 0.68. 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 PEG compares to its industry's average PEG of 0.82. Over the last 12 months, TOL's PEG has been as high as 0.90 and as low as 0.62, with a median of 0.68.
Another valuation metric that we should highlight is TOL's P/B ratio of 1.35. The P/B ratio pits a stock's market value against 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 1.45. Over the past year, TOL's P/B has been as high as 1.44 and as low as 0.78, with a median of 1.04.
Finally, investors should note that TOL has a P/CF ratio of 5.70. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.68. Within the past 12 months, TOL's P/CF has been as high as 6.05 and as low as 3.46, with a median of 4.70.
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) a Great Value Stock 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is Toll Brothers (TOL - Free Report) . TOL is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.50. This compares to its industry's average Forward P/E of 10.35. Over the past year, TOL's Forward P/E has been as high as 8.19 and as low as 4.38, with a median of 6.98.
TOL is also sporting a PEG ratio of 0.68. 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 PEG compares to its industry's average PEG of 0.82. Over the last 12 months, TOL's PEG has been as high as 0.90 and as low as 0.62, with a median of 0.68.
Another valuation metric that we should highlight is TOL's P/B ratio of 1.35. The P/B ratio pits a stock's market value against 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 1.45. Over the past year, TOL's P/B has been as high as 1.44 and as low as 0.78, with a median of 1.04.
Finally, investors should note that TOL has a P/CF ratio of 5.70. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.68. Within the past 12 months, TOL's P/CF has been as high as 6.05 and as low as 3.46, with a median of 4.70.
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.