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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Taylor Morrison Home (TMHC - Free Report) . TMHC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Another valuation metric that we should highlight is TMHC's P/B ratio of 1.13. 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 solid versus its industry's average P/B of 1.64. Over the past year, TMHC's P/B has been as high as 1.28 and as low as 0.78, with a median of 1.07.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TMHC has a P/S ratio of 0.85. This compares to its industry's average P/S of 0.98.
Finally, our model also underscores that TMHC has a P/CF ratio of 8.27. 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. TMHC's current P/CF looks attractive when compared to its industry's average P/CF of 9.91. TMHC's P/CF has been as high as 9.40 and as low as 4.49, with a median of 7.23, all within the past year.
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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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Taylor Morrison Home (TMHC - Free Report) . TMHC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Another valuation metric that we should highlight is TMHC's P/B ratio of 1.13. 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 solid versus its industry's average P/B of 1.64. Over the past year, TMHC's P/B has been as high as 1.28 and as low as 0.78, with a median of 1.07.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TMHC has a P/S ratio of 0.85. This compares to its industry's average P/S of 0.98.
Finally, our model also underscores that TMHC has a P/CF ratio of 8.27. 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. TMHC's current P/CF looks attractive when compared to its industry's average P/CF of 9.91. TMHC's P/CF has been as high as 9.40 and as low as 4.49, with a median of 7.23, all within the past year.
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.