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Is Tri Pointe Homes (TPH) Stock Undervalued Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Tri Pointe Homes (TPH - Free Report) . TPH is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 9.46, which compares to its industry's average of 10.96. Over the past 52 weeks, TPH's Forward P/E has been as high as 12.90 and as low as 3.84, with a median of 10.38.
TPH is also sporting a PEG ratio of 0.86. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TPH's PEG compares to its industry's average PEG of 2.18. Over the past 52 weeks, TPH's PEG has been as high as 1.14 and as low as 0.35, with a median of 0.95.
Another valuation metric that we should highlight is TPH's P/B ratio of 1.09. The P/B ratio is used to compare a stock's market value with 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 1.27. 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 1.01.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TPH has a P/S ratio of 0.66. This compares to its industry's average P/S of 0.78.
Finally, investors will want to recognize that TPH has a P/CF ratio of 7.54. 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 P/CF compares to its industry's average P/CF of 8.76. Within the past 12 months, TPH's P/CF has been as high as 10.23 and as low as 3.41, with a median of 7.41.
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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Is Tri Pointe Homes (TPH) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Tri Pointe Homes (TPH - Free Report) . TPH is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 9.46, which compares to its industry's average of 10.96. Over the past 52 weeks, TPH's Forward P/E has been as high as 12.90 and as low as 3.84, with a median of 10.38.
TPH is also sporting a PEG ratio of 0.86. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TPH's PEG compares to its industry's average PEG of 2.18. Over the past 52 weeks, TPH's PEG has been as high as 1.14 and as low as 0.35, with a median of 0.95.
Another valuation metric that we should highlight is TPH's P/B ratio of 1.09. The P/B ratio is used to compare a stock's market value with 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 1.27. 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 1.01.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TPH has a P/S ratio of 0.66. This compares to its industry's average P/S of 0.78.
Finally, investors will want to recognize that TPH has a P/CF ratio of 7.54. 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 P/CF compares to its industry's average P/CF of 8.76. Within the past 12 months, TPH's P/CF has been as high as 10.23 and as low as 3.41, with a median of 7.41.
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.