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Are Investors Undervaluing Taylor Morrison Home (TMHC) Right Now?
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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, 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 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.
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 holds a P/E ratio of 7.44, while its industry has an average P/E of 9.78. TMHC's Forward P/E has been as high as 8.49 and as low as 5.14, with a median of 6.96, all within the past year.
Another notable valuation metric for TMHC is its P/B ratio of 1.12. The P/B ratio pits a stock's market value against 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 1.34. Within the past 52 weeks, TMHC's P/B has been as high as 1.25 and as low as 0.78, with a median of 1.04.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 0.8. This compares to its industry's average P/S of 0.94.
Finally, investors should note that TMHC has a P/CF ratio of 7.58. 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. TMHC's current P/CF looks attractive when compared to its industry's average P/CF of 9.66. TMHC's P/CF has been as high as 8.41 and as low as 4.15, with a median of 5.25, all within the past year.
These are only a few of the key metrics included in Taylor Morrison Home'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, TMHC looks like an impressive value stock at the moment.
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Are Investors Undervaluing Taylor Morrison Home (TMHC) Right Now?
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, 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 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.
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 holds a P/E ratio of 7.44, while its industry has an average P/E of 9.78. TMHC's Forward P/E has been as high as 8.49 and as low as 5.14, with a median of 6.96, all within the past year.
Another notable valuation metric for TMHC is its P/B ratio of 1.12. The P/B ratio pits a stock's market value against 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 1.34. Within the past 52 weeks, TMHC's P/B has been as high as 1.25 and as low as 0.78, with a median of 1.04.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 0.8. This compares to its industry's average P/S of 0.94.
Finally, investors should note that TMHC has a P/CF ratio of 7.58. 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. TMHC's current P/CF looks attractive when compared to its industry's average P/CF of 9.66. TMHC's P/CF has been as high as 8.41 and as low as 4.15, with a median of 5.25, all within the past year.
These are only a few of the key metrics included in Taylor Morrison Home'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, TMHC looks like an impressive value stock at the moment.