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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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Taylor Morrison Home (TMHC - Free Report) . TMHC is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 7.79, while its industry has an average P/E of 10.60. Over the last 12 months, TMHC's Forward P/E has been as high as 8.20 and as low as 5.14, with a median of 6.49.
Investors should also recognize that TMHC has a P/B ratio of 1.08. 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. This stock's P/B looks solid versus its industry's average P/B of 1.69. TMHC's P/B has been as high as 1.13 and as low as 0.75, with a median of 0.95, 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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TMHC has a P/S ratio of 0.71. This compares to its industry's average P/S of 0.86.
Finally, investors will want to recognize that TMHC has a P/CF ratio of 6.35. 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. This stock's P/CF looks attractive against its industry's average P/CF of 9.21. Over the past 52 weeks, TMHC's P/CF has been as high as 6.61 and as low as 3.24, with a median of 4.72.
Value investors will likely look at more than just these metrics, but the above data helps show that Taylor Morrison Home is likely undervalued currently. And when considering the strength of its earnings outlook, TMHC sticks out at as one of the market's strongest value stocks.
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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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Taylor Morrison Home (TMHC - Free Report) . TMHC is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 7.79, while its industry has an average P/E of 10.60. Over the last 12 months, TMHC's Forward P/E has been as high as 8.20 and as low as 5.14, with a median of 6.49.
Investors should also recognize that TMHC has a P/B ratio of 1.08. 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. This stock's P/B looks solid versus its industry's average P/B of 1.69. TMHC's P/B has been as high as 1.13 and as low as 0.75, with a median of 0.95, 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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TMHC has a P/S ratio of 0.71. This compares to its industry's average P/S of 0.86.
Finally, investors will want to recognize that TMHC has a P/CF ratio of 6.35. 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. This stock's P/CF looks attractive against its industry's average P/CF of 9.21. Over the past 52 weeks, TMHC's P/CF has been as high as 6.61 and as low as 3.24, with a median of 4.72.
Value investors will likely look at more than just these metrics, but the above data helps show that Taylor Morrison Home is likely undervalued currently. And when considering the strength of its earnings outlook, TMHC sticks out at as one of the market's strongest value stocks.