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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.
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.
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 Taylor Morrison Home (TMHC - Free Report) . TMHC is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.29. This compares to its industry's average Forward P/E of 9.77. Over the past 52 weeks, TMHC's Forward P/E has been as high as 7.46 and as low as 2.26, with a median of 3.26.
Another notable valuation metric for TMHC is its P/B ratio of 0.90. 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. This stock's P/B looks attractive against its industry's average P/B of 1.21. Over the past year, TMHC's P/B has been as high as 1.01 and as low as 0.57, with a median of 0.76.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.48. This compares to its industry's average P/S of 0.57.
Finally, investors will want to recognize that TMHC has a P/CF ratio of 3.83. 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. This stock's P/CF looks attractive against its industry's average P/CF of 5.53. Over the past year, TMHC's P/CF has been as high as 5.84 and as low as 2.44, with a median of 3.45.
If you're looking for another solid Building Products - Home Builders value stock, take a look at Tri Pointe Homes (TPH - Free Report) . TPH is a # 2 (Buy) stock with a Value score of A.
Shares of Tri Pointe Homes currently holds a Forward P/E ratio of 6.81, and its PEG ratio is 0.52. In comparison, its industry sports average P/E and PEG ratios of 9.77 and 0.84.
Over the last 12 months, TPH's P/E has been as high as 6.96, as low as 2.67, with a median of 3.97, and its PEG ratio has been as high as 0.54, as low as 0.48, with a median of 0.52.
Tri Pointe Homes also has a P/B ratio of 0.87 compared to its industry's price-to-book ratio of 1.21. Over the past year, its P/B ratio has been as high as 1.06, as low as 0.57, with a median of 0.76.
These are just a handful of the figures considered in Taylor Morrison Home and Tri Pointe Homes'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 TMHC and TPH is an impressive value stock right now.
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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.
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.
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 Taylor Morrison Home (TMHC - Free Report) . TMHC is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.29. This compares to its industry's average Forward P/E of 9.77. Over the past 52 weeks, TMHC's Forward P/E has been as high as 7.46 and as low as 2.26, with a median of 3.26.
Another notable valuation metric for TMHC is its P/B ratio of 0.90. 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. This stock's P/B looks attractive against its industry's average P/B of 1.21. Over the past year, TMHC's P/B has been as high as 1.01 and as low as 0.57, with a median of 0.76.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.48. This compares to its industry's average P/S of 0.57.
Finally, investors will want to recognize that TMHC has a P/CF ratio of 3.83. 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. This stock's P/CF looks attractive against its industry's average P/CF of 5.53. Over the past year, TMHC's P/CF has been as high as 5.84 and as low as 2.44, with a median of 3.45.
If you're looking for another solid Building Products - Home Builders value stock, take a look at Tri Pointe Homes (TPH - Free Report) . TPH is a # 2 (Buy) stock with a Value score of A.
Shares of Tri Pointe Homes currently holds a Forward P/E ratio of 6.81, and its PEG ratio is 0.52. In comparison, its industry sports average P/E and PEG ratios of 9.77 and 0.84.
Over the last 12 months, TPH's P/E has been as high as 6.96, as low as 2.67, with a median of 3.97, and its PEG ratio has been as high as 0.54, as low as 0.48, with a median of 0.52.
Tri Pointe Homes also has a P/B ratio of 0.87 compared to its industry's price-to-book ratio of 1.21. Over the past year, its P/B ratio has been as high as 1.06, as low as 0.57, with a median of 0.76.
These are just a handful of the figures considered in Taylor Morrison Home and Tri Pointe Homes'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 TMHC and TPH is an impressive value stock right now.