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Is Toll Brothers (TOL) Stock Undervalued 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.
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 value investors might notice is Toll Brothers (TOL - Free Report) . TOL is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.14. This compares to its industry's average Forward P/E of 7.70. TOL's Forward P/E has been as high as 8.19 and as low as 4.46, with a median of 7.16, all within the past year.
We should also highlight that TOL has a P/B ratio of 1.19. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. TOL's current P/B looks attractive when compared to its industry's average P/B of 1.30. Over the past 12 months, TOL's P/B has been as high as 1.44 and as low as 0.78, with a median of 1.07.
Finally, we should also recognize that TOL has a P/CF ratio of 4.89. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.55. Over the past 52 weeks, TOL's P/CF has been as high as 6.05 and as low as 3.46, with a median of 4.73.
These are only a few of the key metrics included in Toll Brothers's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TOL looks like an impressive value stock at the moment.
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Is Toll Brothers (TOL) Stock Undervalued 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.
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 value investors might notice is Toll Brothers (TOL - Free Report) . TOL is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.14. This compares to its industry's average Forward P/E of 7.70. TOL's Forward P/E has been as high as 8.19 and as low as 4.46, with a median of 7.16, all within the past year.
We should also highlight that TOL has a P/B ratio of 1.19. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. TOL's current P/B looks attractive when compared to its industry's average P/B of 1.30. Over the past 12 months, TOL's P/B has been as high as 1.44 and as low as 0.78, with a median of 1.07.
Finally, we should also recognize that TOL has a P/CF ratio of 4.89. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.55. Over the past 52 weeks, TOL's P/CF has been as high as 6.05 and as low as 3.46, with a median of 4.73.
These are only a few of the key metrics included in Toll Brothers's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TOL looks like an impressive value stock at the moment.