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Is Tri Pointe Homes (TPH) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 value investors might notice 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 has a Forward P/E ratio of 4.24. This compares to its industry's average Forward P/E of 5.23. Over the past year, TPH's Forward P/E has been as high as 9.05 and as low as 4.15, with a median of 6.22.
Another valuation metric that we should highlight is TPH's P/B ratio of 1. The P/B ratio pits a stock's market value against 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 1.05. Over the past year, TPH's P/B has been as high as 1.36 and as low as 0.93, with a median of 1.16.
Finally, investors should note that TPH has a P/CF ratio of 4.66. 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. This stock's P/CF looks attractive against its industry's average P/CF of 5.58. Over the past 52 weeks, TPH's P/CF has been as high as 8.39 and as low as 4.36, with a median of 6.14.
These are only a few of the key metrics included in Tri Pointe Homes'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, TPH looks like an impressive value stock at the moment.
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Is Tri Pointe Homes (TPH) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 value investors might notice 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 has a Forward P/E ratio of 4.24. This compares to its industry's average Forward P/E of 5.23. Over the past year, TPH's Forward P/E has been as high as 9.05 and as low as 4.15, with a median of 6.22.
Another valuation metric that we should highlight is TPH's P/B ratio of 1. The P/B ratio pits a stock's market value against 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 1.05. Over the past year, TPH's P/B has been as high as 1.36 and as low as 0.93, with a median of 1.16.
Finally, investors should note that TPH has a P/CF ratio of 4.66. 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. This stock's P/CF looks attractive against its industry's average P/CF of 5.58. Over the past 52 weeks, TPH's P/CF has been as high as 8.39 and as low as 4.36, with a median of 6.14.
These are only a few of the key metrics included in Tri Pointe Homes'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, TPH looks like an impressive value stock at the moment.