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Should Value Investors Buy Travel Leisure Co. (TNL) Stock?
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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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is Travel Leisure Co. (TNL - Free Report) . TNL is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 8.65, which compares to its industry's average of 17.13. Over the past 52 weeks, TNL's Forward P/E has been as high as 9.08 and as low as 5.73, with a median of 7.93.
TNL is also sporting 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 industry has an average PEG of 0.87 right now. Over the last 12 months, 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 use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TNL has a P/S ratio of 1.01. This compares to its industry's average P/S of 1.21.
Finally, our model also underscores that TNL has a P/CF ratio of 7.85. 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 stock's P/CF looks attractive against its industry's average P/CF of 13.85. Over the past 52 weeks, TNL's P/CF has been as high as 8.16 and as low as 4.94, with a median of 6.71.
Value investors will likely look at more than just these metrics, but the above data helps show that Travel Leisure Co. is likely undervalued currently. And when considering the strength of its earnings outlook, TNL sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Travel Leisure Co. (TNL) Stock?
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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is Travel Leisure Co. (TNL - Free Report) . TNL is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 8.65, which compares to its industry's average of 17.13. Over the past 52 weeks, TNL's Forward P/E has been as high as 9.08 and as low as 5.73, with a median of 7.93.
TNL is also sporting 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 industry has an average PEG of 0.87 right now. Over the last 12 months, 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 use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TNL has a P/S ratio of 1.01. This compares to its industry's average P/S of 1.21.
Finally, our model also underscores that TNL has a P/CF ratio of 7.85. 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 stock's P/CF looks attractive against its industry's average P/CF of 13.85. Over the past 52 weeks, TNL's P/CF has been as high as 8.16 and as low as 4.94, with a median of 6.71.
Value investors will likely look at more than just these metrics, but the above data helps show that Travel Leisure Co. is likely undervalued currently. And when considering the strength of its earnings outlook, TNL sticks out as one of the market's strongest value stocks.