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Are Investors Undervaluing Travel Leisure Co. (TNL) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Travel Leisure Co. (TNL - Free Report) is a stock many investors are watching right now. TNL is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.65, which compares to its industry's average of 18.48. Over the last 12 months, TNL's Forward P/E has been as high as 9.08 and as low as 5.73, with a median of 7.93.
Investors should also note that TNL holds a PEG ratio of 0.53. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TNL's PEG compares to its industry's average PEG of 0.93. Within the past year, TNL's PEG has been as high as 0.74 and as low as 0.31, with a median of 0.54.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TNL has a P/S ratio of 1. This compares to its industry's average P/S of 1.31.
Finally, investors will want to recognize that TNL has a P/CF ratio of 7.85. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 14.92. Over the past year, TNL's P/CF has been as high as 8.16 and as low as 4.94, with a median of 6.71.
These are just a handful of the figures considered in Travel Leisure Co.'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 TNL is an impressive value stock right now.
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Are Investors Undervaluing Travel Leisure Co. (TNL) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Travel Leisure Co. (TNL - Free Report) is a stock many investors are watching right now. TNL is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.65, which compares to its industry's average of 18.48. Over the last 12 months, TNL's Forward P/E has been as high as 9.08 and as low as 5.73, with a median of 7.93.
Investors should also note that TNL holds a PEG ratio of 0.53. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TNL's PEG compares to its industry's average PEG of 0.93. Within the past year, TNL's PEG has been as high as 0.74 and as low as 0.31, with a median of 0.54.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TNL has a P/S ratio of 1. This compares to its industry's average P/S of 1.31.
Finally, investors will want to recognize that TNL has a P/CF ratio of 7.85. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 14.92. Over the past year, TNL's P/CF has been as high as 8.16 and as low as 4.94, with a median of 6.71.
These are just a handful of the figures considered in Travel Leisure Co.'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 TNL is an impressive value stock right now.