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Are Investors Undervaluing Thor Industries (THO) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 value investors might notice is Thor Industries (THO - Free Report) . THO is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Another notable valuation metric for THO is its P/B ratio of 1.44. 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 1.91. Over the past 12 months, THO's P/B has been as high as 1.59 and as low as 1.04, with a median of 1.23.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.45. This compares to its industry's average P/S of 0.5.
Finally, we should also recognize that THO has a P/CF ratio of 6.67. 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. THO's current P/CF looks attractive when compared to its industry's average P/CF of 8.22. THO's P/CF has been as high as 7.33 and as low as 2.62, with a median of 3.89, all within the past year.
These are just a handful of the figures considered in Thor Industries's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that THO is an impressive value stock right now.
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Are Investors Undervaluing Thor Industries (THO) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 value investors might notice is Thor Industries (THO - Free Report) . THO is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Another notable valuation metric for THO is its P/B ratio of 1.44. 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 1.91. Over the past 12 months, THO's P/B has been as high as 1.59 and as low as 1.04, with a median of 1.23.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.45. This compares to its industry's average P/S of 0.5.
Finally, we should also recognize that THO has a P/CF ratio of 6.67. 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. THO's current P/CF looks attractive when compared to its industry's average P/CF of 8.22. THO's P/CF has been as high as 7.33 and as low as 2.62, with a median of 3.89, all within the past year.
These are just a handful of the figures considered in Thor Industries's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that THO is an impressive value stock right now.