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Should Value Investors Buy Taylor Morrison Home (TMHC) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Taylor Morrison Home (TMHC - Free Report) . TMHC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 8.09 right now. For comparison, its industry sports an average P/E of 10.84. TMHC's Forward P/E has been as high as 8.49 and as low as 5.14, with a median of 7.17, all within the past year.
Another valuation metric that we should highlight is TMHC's P/B ratio of 1.28. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.82. Over the past year, TMHC's P/B has been as high as 1.29 and as low as 0.78, with a median of 1.06.
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 0.94. This compares to its industry's average P/S of 1.06.
Finally, investors will want to recognize that TMHC has a P/CF ratio of 8.81. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.11. Within the past 12 months, TMHC's P/CF has been as high as 8.86 and as low as 4.49, with a median of 7.08.
These are only a few of the key metrics included in Taylor Morrison Home'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, TMHC looks like an impressive value stock at the moment.
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Should Value Investors Buy Taylor Morrison Home (TMHC) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Taylor Morrison Home (TMHC - Free Report) . TMHC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 8.09 right now. For comparison, its industry sports an average P/E of 10.84. TMHC's Forward P/E has been as high as 8.49 and as low as 5.14, with a median of 7.17, all within the past year.
Another valuation metric that we should highlight is TMHC's P/B ratio of 1.28. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.82. Over the past year, TMHC's P/B has been as high as 1.29 and as low as 0.78, with a median of 1.06.
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 0.94. This compares to its industry's average P/S of 1.06.
Finally, investors will want to recognize that TMHC has a P/CF ratio of 8.81. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.11. Within the past 12 months, TMHC's P/CF has been as high as 8.86 and as low as 4.49, with a median of 7.08.
These are only a few of the key metrics included in Taylor Morrison Home'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, TMHC looks like an impressive value stock at the moment.