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Is Taylor Morrison Home (TMHC) 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Taylor Morrison Home (TMHC - Free Report) . TMHC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.71, which compares to its industry's average of 10.85. TMHC's Forward P/E has been as high as 10.25 and as low as 2.22, with a median of 7.89, all within the past year.
TMHC is also sporting a PEG ratio of 1.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TMHC's industry currently sports an average PEG of 2.16. Over the last 12 months, TMHC's PEG has been as high as 1.32 and as low as 1.28, with a median of 1.31.
Another valuation metric that we should highlight is TMHC's P/B ratio of 0.98. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. TMHC's current P/B looks attractive when compared to its industry's average P/B of 1.27. TMHC's P/B has been as high as 1.18 and as low as 0.29, with a median of 0.91, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TMHC has a P/S ratio of 0.59. This compares to its industry's average P/S of 0.8.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Taylor Morrison Home is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TMHC feels like a great value stock at the moment.
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Is Taylor Morrison Home (TMHC) 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Taylor Morrison Home (TMHC - Free Report) . TMHC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.71, which compares to its industry's average of 10.85. TMHC's Forward P/E has been as high as 10.25 and as low as 2.22, with a median of 7.89, all within the past year.
TMHC is also sporting a PEG ratio of 1.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TMHC's industry currently sports an average PEG of 2.16. Over the last 12 months, TMHC's PEG has been as high as 1.32 and as low as 1.28, with a median of 1.31.
Another valuation metric that we should highlight is TMHC's P/B ratio of 0.98. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. TMHC's current P/B looks attractive when compared to its industry's average P/B of 1.27. TMHC's P/B has been as high as 1.18 and as low as 0.29, with a median of 0.91, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TMHC has a P/S ratio of 0.59. This compares to its industry's average P/S of 0.8.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Taylor Morrison Home is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TMHC feels like a great value stock at the moment.