Is Tri Pointe Homes (TPH) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Tri Pointe Homes (TPH) is a stock many investors are watching right now. TPH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 9.85, while its industry has an average P/E of 9.97. Over the past year, TPH's Forward P/E has been as high as 9.88 and as low as 2.67, with a median of 6.09.
Investors should also note that TPH holds a PEG ratio of 0.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TPH's PEG compares to its industry's average PEG of 0.79. TPH's PEG has been as high as 0.76 and as low as 0.48, with a median of 0.63, all within the past year.
Another valuation metric that we should highlight is TPH's P/B ratio of 1.13. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.32. Over the past year, TPH's P/B has been as high as 1.13 and as low as 0.57, with a median of 0.75.
Finally, investors should note that TPH has a P/CF ratio of 5.39. 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. TPH's P/CF compares to its industry's average P/CF of 6.05. Over the past year, TPH's P/CF has been as high as 5.40 and as low as 2.66, with a median of 3.42.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Tri Pointe Homes is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TPH feels like a great value stock at the moment.
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Tri Pointe Homes Inc. (TPH) : Free Stock Analysis Report
