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Are Investors Undervaluing Tri Pointe Homes (TPH) 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.
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 company to watch right now is Tri Pointe Homes (TPH - Free Report) . TPH is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 6.83 right now. For comparison, its industry sports an average P/E of 11.54. 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 9.82.
Investors should also note that TPH holds a PEG ratio of 0.86. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TPH's industry has an average PEG of 2.29 right now. Within the past year, TPH's PEG has been as high as 1.14 and as low as 0.35, with a median of 0.88.
We should also highlight that TPH has a P/B ratio of 0.99. 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. TPH's current P/B looks attractive when compared to its industry's average P/B of 1.27. TPH's P/B has been as high as 1.17 and as low as 0.39, with a median of 1, over the past year.
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 0.65. This compares to its industry's average P/S of 0.75.
Finally, we should also recognize that TPH has a P/CF ratio of 6.72. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. TPH's P/CF compares 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, all within the past year.
These are just a handful of the figures considered in Tri Pointe Homes's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TPH is an impressive value stock right now.
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Are Investors Undervaluing Tri Pointe Homes (TPH) 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.
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 company to watch right now is Tri Pointe Homes (TPH - Free Report) . TPH is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 6.83 right now. For comparison, its industry sports an average P/E of 11.54. 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 9.82.
Investors should also note that TPH holds a PEG ratio of 0.86. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TPH's industry has an average PEG of 2.29 right now. Within the past year, TPH's PEG has been as high as 1.14 and as low as 0.35, with a median of 0.88.
We should also highlight that TPH has a P/B ratio of 0.99. 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. TPH's current P/B looks attractive when compared to its industry's average P/B of 1.27. TPH's P/B has been as high as 1.17 and as low as 0.39, with a median of 1, over the past year.
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 0.65. This compares to its industry's average P/S of 0.75.
Finally, we should also recognize that TPH has a P/CF ratio of 6.72. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. TPH's P/CF compares 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, all within the past year.
These are just a handful of the figures considered in Tri Pointe Homes's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TPH is an impressive value stock right now.