Yahoo Finance Are Investors Undervaluing Travel Leisure Co. (TNL) 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 the latest value, growth, and momentum trends to underscore 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.
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 Travel Leisure Co. (TNL). TNL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.54. This compares to its industry's average Forward P/E of 16.61. TNL's Forward P/E has been as high as 8.80 and as low as 5.57, with a median of 7.19, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TNL has a P/S ratio of 0.84. This compares to its industry's average P/S of 1.
Finally, investors will want to recognize that TNL has a P/CF ratio of 6.23. 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. TNL's P/CF compares to its industry's average P/CF of 12.35. Over the past year, TNL's P/CF has been as high as 7.01 and as low as 5.10, with a median of 6.21.
These are only a few of the key metrics included in Travel Leisure Co.'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, TNL looks like an impressive value stock at the moment.
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Travel + Leisure Co. (TNL) : Free Stock Analysis Report
