U.S. markets closed

Tri Pointe Homes (TPH) Gains But Lags Market: What You Should Know

Zacks Equity Research

Tri Pointe Homes (TPH) closed the most recent trading day at $15.57, moving +0.52% from the previous trading session. This move lagged the S&P 500's daily gain of 1.2%. Meanwhile, the Dow gained 1.7%, and the Nasdaq, a tech-heavy index, added 1.13%.

Investors will be hoping for strength from TPH as it approaches its next earnings release. On that day, TPH is projected to report earnings of $0.28 per share, which would represent year-over-year growth of 55.56%. Our most recent consensus estimate is calling for quarterly revenue of $686.19 million, down 1.69% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.19 per share and revenue of $2.83 billion. These totals would mark changes of -19.05% and -8.12%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for TPH. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.93% higher. 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 13.02. For comparison, its industry has an average Forward P/E of 12.57, which means TPH is trading at a premium to the group.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 210, putting it in the bottom 18% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow TPH in the coming trading sessions, be sure to utilize Zacks.com.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
TRI Pointe Group, Inc. (TPH) : Free Stock Analysis Report
To read this article on Zacks.com click here.