Shares of homebuilder Taylor Morrison Home (NYSE:TMHC)
fell 5% in the afternoon session after the company reported second-quarter results that pointed to softening demand and pressure on future profitability. While the homebuilder's revenue of $2.03 billion beat Wall Street estimates, investors focused on several concerning trends. The company reported a 12% year-over-year decrease in net sales orders and a significant jump in its cancellation rate to 14.6%, up from 9.4% in the prior year. Furthermore, Taylor Morrison noted an increased reliance on speculative homes, which are built without a specific buyer in place and can carry lower margins. These spec sales accounted for a high of 71% of all sales. Management indicated that this shift, combined with higher incentives, was likely to weigh on gross margins going forward, and the company's earnings per share of $1.92 slightly missed analyst expectations.
Homebuilder Taylor Morrison Home (NYSE:TMHC) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 2% year on year to $2.03 billion. Its non-GAAP profit of $1.92 per share was 1% below analysts’ consensus estimates.
TAYLOR MORRISON HOME CORP (NYSE:TMHC) offers strong growth, solid profitability, and an undervalued stock price, making it a standout for GARP investors following Peter Lynch’s strategy.
Homebuilder Taylor Morrison Home (NYSE:TMHC) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 2% year on year to $2.03 billion. Its non-GAAP profit of $2.02 per share was 4.1% above analysts’ consensus estimates.
Investors looking for hidden gems should keep an eye on small-cap stocks because they’re frequently overlooked by Wall Street.
Many opportunities exist in this part of the market, but it is also a high-risk, high-reward environment due to the lack of reliable analyst price targets.
Taylor Morrison Home Corp (NYSE:TMHC) is an undervalued homebuilder with strong profitability, solid financial health, and reasonable growth prospects, making it a potential candidate for value investors.
Taylor Morrison Home Corp (NYSE:TMHC) offers strong earnings growth, solid profitability, and an attractive valuation, making it a potential fit for GARP investors following Peter Lynch’s strategy.
Taylor Morrison Home Corp (NYSE:TMHC) offers strong growth and reasonable valuation, fitting Peter Lynch’s GARP strategy with robust earnings, low debt, and high profitability.
Value stocks typically trade at discounts to the broader market, offering patient investors the opportunity to buy businesses when they’re out of favor.
The key risk, however, is that these stocks are usually cheap for a reason – five cents for a piece of fruit may seem like a great deal until you find out it’s rotten.
The Russell 2000 (^RUT) is home to many small-cap stocks, offering investors the chance to uncover hidden gems before the broader market catches on.
However, these companies often come with higher volatility and risk, as their smaller size makes them more vulnerable to economic downturns.
As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the home builders industry, including Taylor Morrison Home (NYSE:TMHC) and its peers.
Taylor Morrison Home Corp (NYSE:TMHC) is a homebuilder with strong growth, solid profitability, and an attractive valuation, making it a candidate for long-term investors following Peter Lynch's strategy.
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at TopBuild (NYSE:BLD) and the best and worst performers in the home builders industry.
