Thermon Group Holdings Inc. (THR) stock soared 5.05% in intraday trading on Monday, as the company received a positive analyst rating and was identified as potentially undervalued by a Zacks analysis.
Zacks Equity Research upgraded Thermon to a "Buy" rating with a Zacks Rank #2, citing the company's attractive valuation metrics. The analysis highlighted Thermon's low price-to-earnings ratio of 12.85 compared to its industry average of 17.32, as well as its price-to-book ratio of 1.82 versus the industry average of 3.36.
Furthermore, Zacks noted that Thermon's price-to-sales ratio of 1.89 and price-to-cash-flow ratio of 13.79 were also favorable compared to industry peers. The report concluded that when considering Thermon's strong earnings outlook, the stock appears undervalued at its current price.