TMHC - Taylor Morrison Home Corporation: Cheap With Caveats
2024-01-26 19:06:38 ET
Summary
- Taylor Morrison Home Corporation's stock fell nearly six percent after a poor Q4 report from D.R. Horton in trading on Tuesday.
- Taylor Morrison is cheap on an earnings and operational cash flow valuation basis and has a rock-solid balance sheet.
- Buy the dip or avoid this potential 'value trap'? An analysis around Taylor Morrison follows in the paragraphs below.
Buy land, they’re not making it anymore .” -Mark Twain
Today, we put Taylor Morrison Home Corporation ( TMHC ) in the spotlight since our last piece on the name in October of 2022. The stock of this home builder sold off in trading on Tuesday. The shares fell nearly six percent on the day while the overall market was up. The trigger was a poor Q4 report from home building giant D.R. Horton, Inc. ( DHI ) which cause that equity to fall nine percent in trading. This was the worst daily performance for DHI since 2020. D.R. Horton's results were hurt lower gross margins due to incentives and reduced home prices to improve affordability for buyers and new home orders came in under expectations as well....
Taylor Morrison Home Corporation: Cheap With Caveats