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Should Value Investors Buy Tri Pointe Homes (TPH) Stock?
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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company to watch right now is Tri Pointe Homes (TPH - Free Report) . TPH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.01 right now. For comparison, its industry sports an average P/E of 11.01. TPH's Forward P/E has been as high as 12.90 and as low as 3.84, with a median of 10.39, all within the past year.
Investors will also notice that TPH has a PEG ratio of 0.86. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TPH's PEG compares to its industry's average PEG of 2.19. TPH's PEG has been as high as 1.14 and as low as 0.35, with a median of 0.94, all within the past year.
Another valuation metric that we should highlight is TPH's P/B ratio of 1.01. The P/B ratio pits a stock's market value against 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 1.27. Over the past 12 months, TPH's P/B has been as high as 1.17 and as low as 0.39, with a median of 1.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TPH has a P/S ratio of 0.68. This compares to its industry's average P/S of 0.76.
Finally, we should also recognize that TPH has a P/CF ratio of 7.05. 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 8.76. TPH's P/CF has been as high as 10.23 and as low as 3.41, with a median of 7.43, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Tri Pointe Homes is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TPH feels like a great value stock at the moment.
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Should Value Investors Buy Tri Pointe Homes (TPH) Stock?
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company to watch right now is Tri Pointe Homes (TPH - Free Report) . TPH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.01 right now. For comparison, its industry sports an average P/E of 11.01. TPH's Forward P/E has been as high as 12.90 and as low as 3.84, with a median of 10.39, all within the past year.
Investors will also notice that TPH has a PEG ratio of 0.86. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TPH's PEG compares to its industry's average PEG of 2.19. TPH's PEG has been as high as 1.14 and as low as 0.35, with a median of 0.94, all within the past year.
Another valuation metric that we should highlight is TPH's P/B ratio of 1.01. The P/B ratio pits a stock's market value against 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 1.27. Over the past 12 months, TPH's P/B has been as high as 1.17 and as low as 0.39, with a median of 1.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TPH has a P/S ratio of 0.68. This compares to its industry's average P/S of 0.76.
Finally, we should also recognize that TPH has a P/CF ratio of 7.05. 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 8.76. TPH's P/CF has been as high as 10.23 and as low as 3.41, with a median of 7.43, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Tri Pointe Homes is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TPH feels like a great value stock at the moment.