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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 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 company to watch right now is Toll Brothers (TOL - Free Report) . TOL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.02, which compares to its industry's average of 10.66. TOL's Forward P/E has been as high as 10.94 and as low as 5.85, with a median of 8.72, all within the past year.
Finally, investors should note that TOL has a P/CF ratio of 9.37. 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. This stock's P/CF looks attractive against its industry's average P/CF of 9.99. Over the past year, TOL's P/CF has been as high as 10.21 and as low as 5.29, with a median of 7.96.
Value investors will likely look at more than just these metrics, but the above data helps show that Toll Brothers is likely undervalued currently. And when considering the strength of its earnings outlook, TOL sticks out at as one of the market's strongest value stocks.
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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 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 company to watch right now is Toll Brothers (TOL - Free Report) . TOL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.02, which compares to its industry's average of 10.66. TOL's Forward P/E has been as high as 10.94 and as low as 5.85, with a median of 8.72, all within the past year.
Finally, investors should note that TOL has a P/CF ratio of 9.37. 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. This stock's P/CF looks attractive against its industry's average P/CF of 9.99. Over the past year, TOL's P/CF has been as high as 10.21 and as low as 5.29, with a median of 7.96.
Value investors will likely look at more than just these metrics, but the above data helps show that Toll Brothers is likely undervalued currently. And when considering the strength of its earnings outlook, TOL sticks out at as one of the market's strongest value stocks.