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Is Thor Industries (THO) a Great Value Stock 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.

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.

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.

One stock to keep an eye on is Thor Industries (THO - Free Report) . THO 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 13.75, which compares to its industry's average of 22.83. Over the past year, THO's Forward P/E has been as high as 35.90 and as low as 6.01, with a median of 14.54.

Investors should also recognize that THO has a P/B ratio of 2.25. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. THO's current P/B looks attractive when compared to its industry's average P/B of 2.91. Over the past 12 months, THO's P/B has been as high as 3.08 and as low as 0.90, with a median of 2.14.

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 0.61. This compares to its industry's average P/S of 1.37.

Finally, our model also underscores that THO has a P/CF ratio of 12.37. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 16.14. THO's P/CF has been as high as 16.23 and as low as 4.60, with a median of 11.71, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Thor Industries is likely undervalued currently. And when considering the strength of its earnings outlook, THO sticks out at as one of the market's strongest value stocks.


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