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Should Value Investors Buy Taylor Morrison Home (TMHC) Stock?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 5.57, while its industry has an average P/E of 9.88. Over the past year, TMHC's Forward P/E has been as high as 7.46 and as low as 2.26, with a median of 3.26.
We should also highlight 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. TMHC's current P/B looks attractive when compared to its industry's average P/B of 1.15. Within the past 52 weeks, TMHC's P/B has been as high as 1 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. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TMHC has a P/S ratio of 0.48. This compares to its industry's average P/S of 0.61.
Finally, investors should note that TMHC has a P/CF ratio of 3.69. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.10. TMHC's P/CF has been as high as 5.79 and as low as 2.44, with a median of 3.37, all within the past year.
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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Should Value Investors Buy Taylor Morrison Home (TMHC) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 5.57, while its industry has an average P/E of 9.88. Over the past year, TMHC's Forward P/E has been as high as 7.46 and as low as 2.26, with a median of 3.26.
We should also highlight 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. TMHC's current P/B looks attractive when compared to its industry's average P/B of 1.15. Within the past 52 weeks, TMHC's P/B has been as high as 1 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. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TMHC has a P/S ratio of 0.48. This compares to its industry's average P/S of 0.61.
Finally, investors should note that TMHC has a P/CF ratio of 3.69. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.10. TMHC's P/CF has been as high as 5.79 and as low as 2.44, with a median of 3.37, all within the past year.
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.