TMHC - Taylor Morrison Home: Fairly Priced As Momentum Builds For 2025
2024-03-11 01:48:53 ET
Summary
- Taylor Morrison Home Corporation's stock has seen a 54% increase due to a bounce back from a low valuation.
- The company's guidance for 2024 shows modest growth in home closings and a shift towards more affordable homes.
- Until evidence supports guidance for strong growth in 2025, TMHC stock looks fairly priced.
A year ago, I made the case for home builder Taylor Morrison Home Corporation ( TMHC ) but waffled on the rating (with a hold) because, at the time, a nascent breakout to all-time highs looked ready for a rest. The breakout soon continued. While TMHC eventually pulled back and tested the breakout point, the stock never looked back from that important test of technical support. The net result is now a stock up around 54%. Yet, the rally was mostly about bouncing away from an extremely low valuation as TMHC’s financial performance unfolded as expected. TMHC is now at a 10+ year high based on price/sales. Price/book has gone from recession pricing around 0.85 to a more reasonable, but still low 1.2....
Taylor Morrison Home: Fairly Priced As Momentum Builds For 2025