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Are Investors Undervaluing Thor Industries (THO) 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Thor Industries (THO - Free Report) is a stock many investors are watching right now. THO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.72 right now. For comparison, its industry sports an average P/E of 13.04. THO's Forward P/E has been as high as 11.21 and as low as 7.03, with a median of 9.71, all within the past year.
Investors will also notice that THO has a PEG ratio of 0.69. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. THO's PEG compares to its industry's average PEG of 0.77. Over the past 52 weeks, THO's PEG has been as high as 0.72 and as low as 0.63, with a median of 0.68.
Another valuation metric that we should highlight is THO's P/B ratio of 1.90. The P/B is a method of comparing a stock's market value to 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 2.26. Over the past 12 months, THO's P/B has been as high as 3.25 and as low as 1.34, with a median of 2.05.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. THO has a P/S ratio of 0.53. This compares to its industry's average P/S of 1.07.
These are just a handful of the figures considered in Thor Industries'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 THO is an impressive value stock right now.
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Are Investors Undervaluing Thor Industries (THO) 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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Thor Industries (THO - Free Report) is a stock many investors are watching right now. THO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.72 right now. For comparison, its industry sports an average P/E of 13.04. THO's Forward P/E has been as high as 11.21 and as low as 7.03, with a median of 9.71, all within the past year.
Investors will also notice that THO has a PEG ratio of 0.69. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. THO's PEG compares to its industry's average PEG of 0.77. Over the past 52 weeks, THO's PEG has been as high as 0.72 and as low as 0.63, with a median of 0.68.
Another valuation metric that we should highlight is THO's P/B ratio of 1.90. The P/B is a method of comparing a stock's market value to 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 2.26. Over the past 12 months, THO's P/B has been as high as 3.25 and as low as 1.34, with a median of 2.05.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. THO has a P/S ratio of 0.53. This compares to its industry's average P/S of 1.07.
These are just a handful of the figures considered in Thor Industries'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 THO is an impressive value stock right now.