雅虎香港財經 Should Value Investors Buy Tri Pointe Homes (TPH) Stock?
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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Tri Pointe Homes (TPH). TPH 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 7.78, while its industry has an average P/E of 9.55. Over the past year, TPH's Forward P/E has been as high as 11.01 and as low as 6.44, with a median of 9.19.
Investors will also notice that TPH has a PEG ratio of 0.60. 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 0.77. Over the last 12 months, TPH's PEG has been as high as 0.87 and as low as 0.50, with a median of 0.71.
Investors should also recognize that TPH has a P/B ratio of 1.15. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. TPH's current P/B looks attractive when compared to its industry's average P/B of 1.60. TPH's P/B has been as high as 1.26 and as low as 0.81, with a median of 1.11, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TPH has a P/S ratio of 0.95. This compares to its industry's average P/S of 0.96.
Finally, we should also recognize that TPH has a P/CF ratio of 8.48. 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. This stock's P/CF looks attractive against its industry's average P/CF of 8.81. TPH's P/CF has been as high as 9.65 and as low as 5.11, with a median of 6.71, all within the past year.
These are just a handful of the figures considered in Tri Pointe Homes's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TPH is an impressive value stock right now.
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Tri Pointe Homes Inc. (TPH) : Free Stock Analysis Report
