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Should Value Investors Buy Tri Pointe Homes (TPH) Stock?
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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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 an A grade for Value. The stock is trading with P/E ratio of 3.51 right now. For comparison, its industry sports an average P/E of 4.36. TPH's Forward P/E has been as high as 7.96 and as low as 3.51, with a median of 6, all within the past year.
Investors should also recognize that TPH has a P/B ratio of 0.87. 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. TPH's current P/B looks attractive when compared to its industry's average P/B of 0.89. TPH's P/B has been as high as 1.36 and as low as 0.81, with a median of 1.13, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TPH has a P/S ratio of 0.5. This compares to its industry's average P/S of 0.52.
Finally, our model also underscores that TPH has a P/CF ratio of 4.06. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. TPH's current P/CF looks attractive when compared to its industry's average P/CF of 4.74. Within the past 12 months, TPH's P/CF has been as high as 8.39 and as low as 3.78, with a median of 5.79.
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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Should Value Investors Buy Tri Pointe Homes (TPH) Stock?
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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 an A grade for Value. The stock is trading with P/E ratio of 3.51 right now. For comparison, its industry sports an average P/E of 4.36. TPH's Forward P/E has been as high as 7.96 and as low as 3.51, with a median of 6, all within the past year.
Investors should also recognize that TPH has a P/B ratio of 0.87. 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. TPH's current P/B looks attractive when compared to its industry's average P/B of 0.89. TPH's P/B has been as high as 1.36 and as low as 0.81, with a median of 1.13, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TPH has a P/S ratio of 0.5. This compares to its industry's average P/S of 0.52.
Finally, our model also underscores that TPH has a P/CF ratio of 4.06. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. TPH's current P/CF looks attractive when compared to its industry's average P/CF of 4.74. Within the past 12 months, TPH's P/CF has been as high as 8.39 and as low as 3.78, with a median of 5.79.
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.