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Tri Pointe Homes (TPH) Stock Sinks As Market Gains: What You Should Know

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Tri Pointe Homes (TPH - Free Report) closed the most recent trading day at $14.32, moving -0.9% from the previous trading session. This change lagged the S&P 500's daily gain of 0.48%. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq gained 1.29%.

Investors will be hoping for strength from TPH as it approaches its next earnings release. In that report, analysts expect TPH to post earnings of $0.28 per share. This would mark year-over-year growth of 55.56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $686.19 million, down 1.69% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.15 per share and revenue of $2.75 billion, which would represent changes of -21.77% and -10.77%, respectively, from the prior year.

Any recent changes to analyst estimates for TPH should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TPH is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, TPH is currently trading at a Forward P/E ratio of 12.62. For comparison, its industry has an average Forward P/E of 11.89, which means TPH is trading at a premium to the group.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 241, which puts it in the bottom 6% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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