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Is Tri Pointe Homes (TPH) Stock Undervalued Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 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 company to watch right now is Tri Pointe Homes (TPH - Free Report) . TPH is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 10.91. This compares to its industry's average Forward P/E of 11.29. Over the past 52 weeks, TPH's Forward P/E has been as high as 12.54 and as low as 7.42, with a median of 9.85.
Investors should also note that TPH holds a PEG ratio of 0.99. 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. TPH's industry has an average PEG of 1.15 right now. Over the last 12 months, TPH's PEG has been as high as 1.14 and as low as 0.74, with a median of 0.94.
Investors should also recognize that TPH has a P/B ratio of 1.08. 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 1.38. Over the past year, TPH's P/B has been as high as 1.17 and as low as 0.78, with a median of 0.95.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. TPH has a P/S ratio of 0.73. This compares to its industry's average P/S of 0.74.
Finally, investors will want to recognize that TPH has a P/CF ratio of 9.42. 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. TPH's current P/CF looks attractive when compared to its industry's average P/CF of 9.69. TPH's P/CF has been as high as 10.23 and as low as 5.57, with a median of 8.52, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Tri Pointe Homes is likely undervalued currently. And when considering the strength of its earnings outlook, TPH sticks out at as one of the market's strongest value stocks.
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Is Tri Pointe Homes (TPH) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 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 company to watch right now is Tri Pointe Homes (TPH - Free Report) . TPH is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 10.91. This compares to its industry's average Forward P/E of 11.29. Over the past 52 weeks, TPH's Forward P/E has been as high as 12.54 and as low as 7.42, with a median of 9.85.
Investors should also note that TPH holds a PEG ratio of 0.99. 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. TPH's industry has an average PEG of 1.15 right now. Over the last 12 months, TPH's PEG has been as high as 1.14 and as low as 0.74, with a median of 0.94.
Investors should also recognize that TPH has a P/B ratio of 1.08. 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 1.38. Over the past year, TPH's P/B has been as high as 1.17 and as low as 0.78, with a median of 0.95.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. TPH has a P/S ratio of 0.73. This compares to its industry's average P/S of 0.74.
Finally, investors will want to recognize that TPH has a P/CF ratio of 9.42. 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. TPH's current P/CF looks attractive when compared to its industry's average P/CF of 9.69. TPH's P/CF has been as high as 10.23 and as low as 5.57, with a median of 8.52, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Tri Pointe Homes is likely undervalued currently. And when considering the strength of its earnings outlook, TPH sticks out at as one of the market's strongest value stocks.