Yahoo Finance Are Investors Undervaluing Taylor Morrison Home (TMHC) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 company to watch right now is Taylor Morrison Home (TMHC). 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 7.15, while its industry has an average P/E of 9.96. Over the past 52 weeks, TMHC's Forward P/E has been as high as 8.49 and as low as 5.14, with a median of 7.15.
We should also highlight that TMHC has a P/B ratio of 1.12. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.66. Over the past year, TMHC's P/B has been as high as 1.25 and as low as 0.78, with a median of 1.05.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TMHC has a P/S ratio of 0.81. This compares to its industry's average P/S of 0.97.
Finally, our model also underscores that TMHC has a P/CF ratio of 7.68. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. TMHC's P/CF compares to its industry's average P/CF of 9.18. Over the past year, TMHC's P/CF has been as high as 8.41 and as low as 4.42, with a median of 5.69.
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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Taylor Morrison Home Corporation (TMHC) : Free Stock Analysis Report
