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3 Top Stocks Tailored Toward Value-Conscious Investors
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Value investing is centered around jumping on stocks trading at a discount, with the idea that the market will eventually ‘catch up’ and recognize their true value, which can lead to serious gains.
After all, we all enjoy a good deal.
And the strategy can become even more lucrative when adding in the Zacks Rank, allowing us to find stocks that analysts have recently become optimistic about.
Three top-ranked stocks trading at enticing valuation levels – Toll Brothers (TOL - Free Report) , American Woodmark (AMWD - Free Report) , and Unum Group (UNM - Free Report) – could all be considerations for value-focused investors. Let’s take a closer look at each.
American Woodmark
American Woodmark is the third-largest manufacturer of kitchen and bath cabinets. The company has enjoyed positive earnings estimate revisions across the board, helping land the stock into a Zacks Rank #1 (Strong Buy).
The revisions trend has been particularly strong for the company’s upcoming quarterly release.
Image Source: Zacks Investment Research
Shares presently trade at a 10.9X forward earnings multiple, nicely beneath the 11.6X five-year median and highs of 18.7X in 2022.
Image Source: Zacks Investment Research
Further, the current forward price-to-sales ratio works out to be 0.6X, again below the five-year median and the Zacks industry average. The stock sports a Style Score of “A” for Value.
Image Source: Zacks Investment Research
The company has been a big-time earnings performer, exceeding the Zacks Consensus EPS Estimate by an average of nearly 30% across its last four quarters. In its latest release, AMWD penciled in a 100% EPS surprise and reported revenue 5% ahead of expectations.
Image Source: Zacks Investment Research
Unum Group
Unum Group provides disability insurance, long-term care insurance, life insurance, and employee-paid group benefits and related services. Earnings expectations have been raised across all timeframes, with the stock carrying the highly-coveted Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Similar to AMWD, Unum Group carries a Style Score of “A” for Value. Shares currently trade at a 6.2X forward earnings multiple, in line with the five-year median and nicely below highs of 8.1X in 2022.
Image Source: Zacks Investment Research
In addition, the forward price-to-sales sits at 0.7X currently, a tick above the five-year median and well below the Zacks industry average.
Image Source: Zacks Investment Research
And for those seeking an income stream, UNM has that covered; shares currently yield 2.9% annually, with the payout growing by a solid 6% over the last five years.
As shown below, the company has consistently increasingly rewarded its shareholders.
Image Source: Zacks Investment Research
Toll Brothers
Toll Brothers, a Zacks Rank #1 (Strong Buy), builds single-family detached and attached home communities, master-planned luxury residential resort-style golf communities, and more. Analysts have taken their earnings expectations notably higher and have been in full agreement.
Image Source: Zacks Investment Research
Like the stocks above, Toll Brothers carries a Style Score of “A” for Value. Shares presently trade at a 7.2X forward earnings multiple, beneath the 8.4X five-year median and just a few ticks above the 2022 high.
Image Source: Zacks Investment Research
The forward-price-to-sales currently resides at 0.9X, slightly above highs of 0.8X in 2022 but below the Zacks industry average.
Image Source: Zacks Investment Research
Watch for TOL’s upcoming release on August 22nd; the Zacks Consensus EPS Estimate of $2.86 indicates a 21% year-over-year improvement in earnings. The company has posted notably strong results as of late, exceeding earnings expectations by an average of nearly 25% across its last four periods.
Bottom Line
Value investors are always looking for deals, expecting the rest of the crowd to eventually catch onto the discounts and lead to significant gains.
And when you pair this strategy with the Zacks Rank, which is focused on earnings estimate revisions, it’s much easier to find mispriced stocks with great near-term potential.
All three stocks above – Toll Brothers (TOL - Free Report) , American Woodmark (AMWD - Free Report) , and Unum Group (UNM - Free Report) – should be closely monitored by value-focused investors.
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3 Top Stocks Tailored Toward Value-Conscious Investors
Value investing is centered around jumping on stocks trading at a discount, with the idea that the market will eventually ‘catch up’ and recognize their true value, which can lead to serious gains.
After all, we all enjoy a good deal.
And the strategy can become even more lucrative when adding in the Zacks Rank, allowing us to find stocks that analysts have recently become optimistic about.
Three top-ranked stocks trading at enticing valuation levels – Toll Brothers (TOL - Free Report) , American Woodmark (AMWD - Free Report) , and Unum Group (UNM - Free Report) – could all be considerations for value-focused investors. Let’s take a closer look at each.
American Woodmark
American Woodmark is the third-largest manufacturer of kitchen and bath cabinets. The company has enjoyed positive earnings estimate revisions across the board, helping land the stock into a Zacks Rank #1 (Strong Buy).
The revisions trend has been particularly strong for the company’s upcoming quarterly release.
Image Source: Zacks Investment Research
Shares presently trade at a 10.9X forward earnings multiple, nicely beneath the 11.6X five-year median and highs of 18.7X in 2022.
Image Source: Zacks Investment Research
Further, the current forward price-to-sales ratio works out to be 0.6X, again below the five-year median and the Zacks industry average. The stock sports a Style Score of “A” for Value.
Image Source: Zacks Investment Research
The company has been a big-time earnings performer, exceeding the Zacks Consensus EPS Estimate by an average of nearly 30% across its last four quarters. In its latest release, AMWD penciled in a 100% EPS surprise and reported revenue 5% ahead of expectations.
Image Source: Zacks Investment Research
Unum Group
Unum Group provides disability insurance, long-term care insurance, life insurance, and employee-paid group benefits and related services. Earnings expectations have been raised across all timeframes, with the stock carrying the highly-coveted Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Similar to AMWD, Unum Group carries a Style Score of “A” for Value. Shares currently trade at a 6.2X forward earnings multiple, in line with the five-year median and nicely below highs of 8.1X in 2022.
Image Source: Zacks Investment Research
In addition, the forward price-to-sales sits at 0.7X currently, a tick above the five-year median and well below the Zacks industry average.
Image Source: Zacks Investment Research
And for those seeking an income stream, UNM has that covered; shares currently yield 2.9% annually, with the payout growing by a solid 6% over the last five years.
As shown below, the company has consistently increasingly rewarded its shareholders.
Image Source: Zacks Investment Research
Toll Brothers
Toll Brothers, a Zacks Rank #1 (Strong Buy), builds single-family detached and attached home communities, master-planned luxury residential resort-style golf communities, and more. Analysts have taken their earnings expectations notably higher and have been in full agreement.
Image Source: Zacks Investment Research
Like the stocks above, Toll Brothers carries a Style Score of “A” for Value. Shares presently trade at a 7.2X forward earnings multiple, beneath the 8.4X five-year median and just a few ticks above the 2022 high.
Image Source: Zacks Investment Research
The forward-price-to-sales currently resides at 0.9X, slightly above highs of 0.8X in 2022 but below the Zacks industry average.
Image Source: Zacks Investment Research
Watch for TOL’s upcoming release on August 22nd; the Zacks Consensus EPS Estimate of $2.86 indicates a 21% year-over-year improvement in earnings. The company has posted notably strong results as of late, exceeding earnings expectations by an average of nearly 25% across its last four periods.
Bottom Line
Value investors are always looking for deals, expecting the rest of the crowd to eventually catch onto the discounts and lead to significant gains.
And when you pair this strategy with the Zacks Rank, which is focused on earnings estimate revisions, it’s much easier to find mispriced stocks with great near-term potential.
All three stocks above – Toll Brothers (TOL - Free Report) , American Woodmark (AMWD - Free Report) , and Unum Group (UNM - Free Report) – should be closely monitored by value-focused investors.