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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.
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.
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.
Taylor Morrison Home (TMHC - Free Report) is a stock many investors are watching right now. TMHC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 7.80, which compares to its industry's average of 10.17. TMHC's Forward P/E has been as high as 8.26 and as low as 5.14, with a median of 6.49, all within the past year.
We should also highlight that TMHC has a P/B ratio of 1.09. 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 stock's P/B looks attractive against its industry's average P/B of 1.62. Over the past year, TMHC's P/B has been as high as 1.15 and as low as 0.78, with a median of 0.96.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.72. This compares to its industry's average P/S of 0.9.
Finally, we should also recognize that TMHC has a P/CF ratio of 6.38. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 8.88. Over the past 52 weeks, TMHC's P/CF has been as high as 6.76 and as low as 3.36, with a median of 4.77.
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.
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.
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.
Taylor Morrison Home (TMHC - Free Report) is a stock many investors are watching right now. TMHC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 7.80, which compares to its industry's average of 10.17. TMHC's Forward P/E has been as high as 8.26 and as low as 5.14, with a median of 6.49, all within the past year.
We should also highlight that TMHC has a P/B ratio of 1.09. 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 stock's P/B looks attractive against its industry's average P/B of 1.62. Over the past year, TMHC's P/B has been as high as 1.15 and as low as 0.78, with a median of 0.96.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.72. This compares to its industry's average P/S of 0.9.
Finally, we should also recognize that TMHC has a P/CF ratio of 6.38. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 8.88. Over the past 52 weeks, TMHC's P/CF has been as high as 6.76 and as low as 3.36, with a median of 4.77.
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.