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Are Investors Undervaluing Taylor Morrison Home (TMHC) 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, 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Taylor Morrison Home (TMHC - Free Report) is a stock many investors are watching right now. TMHC 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 5.56, which compares to its industry's average of 9.07. TMHC's Forward P/E has been as high as 7.46 and as low as 2.26, with a median of 3.26, all within the past year.
Investors should also recognize that TMHC has a P/B ratio of 0.85. The P/B is a method of comparing a stock's market value to 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 0.96. Over the past 12 months, TMHC's P/B has been as high as 1.01 and as low as 0.57, with a median of 0.75.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TMHC has a P/S ratio of 0.47. This compares to its industry's average P/S of 0.56.
Finally, we should also recognize that TMHC has a P/CF ratio of 3.67. 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. TMHC's P/CF compares to its industry's average P/CF of 5.05. Within the past 12 months, TMHC's P/CF has been as high as 5.84 and as low as 2.44, with a median of 3.37.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Taylor Morrison Home is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TMHC feels like a great value stock at the moment.
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Are Investors Undervaluing Taylor Morrison Home (TMHC) 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, 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Taylor Morrison Home (TMHC - Free Report) is a stock many investors are watching right now. TMHC 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 5.56, which compares to its industry's average of 9.07. TMHC's Forward P/E has been as high as 7.46 and as low as 2.26, with a median of 3.26, all within the past year.
Investors should also recognize that TMHC has a P/B ratio of 0.85. The P/B is a method of comparing a stock's market value to 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 0.96. Over the past 12 months, TMHC's P/B has been as high as 1.01 and as low as 0.57, with a median of 0.75.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TMHC has a P/S ratio of 0.47. This compares to its industry's average P/S of 0.56.
Finally, we should also recognize that TMHC has a P/CF ratio of 3.67. 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. TMHC's P/CF compares to its industry's average P/CF of 5.05. Within the past 12 months, TMHC's P/CF has been as high as 5.84 and as low as 2.44, with a median of 3.37.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Taylor Morrison Home is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TMHC feels like a great value stock at the moment.