Is Thor Industries (THO) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to...
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company value investors might notice is Thor Industries (THO). THO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.81, which compares to its industry's average of 10.22. Over the past year, THO's Forward P/E has been as high as 16.36 and as low as 7.81, with a median of 12.47.
We should also highlight that THO has a P/B ratio of 2.01. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.92. THO's P/B has been as high as 3.25 and as low as 1.84, with a median of 2.29, over the past year.
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 0.47. This compares to its industry's average P/S of 0.62.
Finally, our model also underscores that THO has a P/CF ratio of 6.60. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. THO's P/CF compares to its industry's average P/CF of 13.73. Over the past year, THO's P/CF has been as high as 13.90 and as low as 6.55, with a median of 10.23.
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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Thor Industries, Inc. (THO): Free Stock Analysis Report
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