This home builder is benefiting from increased demand from first-time home buyers. The company beat analysts’ estimates by two cents per share last quarter.
Taylor Morrison Home Corporation (TMHC)
From Upside
Taylor Morrison Home Corporation (TMHC) builds single-family homes in 20 markets in eight states, including California and Florida. The company is also a land developer, with a portfolio of lifestyle and planned communities.
On March 31, the backlog stood at 3,927 units valued at $1.9 billion, up 17% from a year earlier. An expansive land portfolio provides a foundation for growth. Taylor has more than 37,000 property lots, or a nearly five-year supply.
Like other homebuilders, Taylor is benefiting from robust demand and favorable pricing. Taylor’s Overall score of 97 ranks No. 4 among the 27 homebuilders in Quadrix, which earn an average score of 83. The Value score is 80, versus 75 for its peers. Analyst estimates are rising, with the consensus projecting Taylor will earn $1.90 per share in 2017, up 11% on 9% higher revenue. For 2018, the consensus calls for 15% profit growth. The stock, trading at a reasonable 13 times trailing earnings, is being initiated as a Buy.
Richard J. Moroney, CFA, Upside, www.upsidestocks.com, 800-233-5922, June 2017