TMHC Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Taylor Morrison Home Corp (TMHC) is not a strong buy for a beginner, long-term investor at this moment. While the company demonstrates resilience and operational efficiency, the declining financial performance, mixed analyst sentiment, and lack of clear trading signals suggest waiting for a more favorable entry point. The investor's impatience and unwillingness to wait for optimal entry points make this stock less suitable for immediate investment.
The technical indicators show a bullish trend with SMA_5 > SMA_20 > SMA_200, and the MACD histogram is positive at 0.272. RSI is neutral at 61.967, indicating no overbought or oversold conditions. The stock is trading near its resistance level (R2: 68.436), suggesting limited immediate upside potential.
Q4 earnings beat expectations with non-GAAP EPS of $1.91 exceeding estimates by $0.
Revenue surpassed expectations by $150 million, showcasing resilience.
Stock repurchase program increased to $1 billion, reflecting management confidence.
Effective land resource management with 78,835 controlled homebuilding lots.
Financial performance in Q4 2025 showed significant YoY declines: revenue (-10.90%), net income (-28.23%), EPS (-23.48%), and gross margin (-8.36%).
Analysts express caution due to housing affordability challenges and market volatility.
Mixed sentiment in analyst ratings, with some lowering price targets.
No significant hedge fund or insider trading trends, indicating neutral sentiment.
In Q4 2025, Taylor Morrison's revenue dropped 10.90% YoY to $2.1 billion, net income fell 28.23% YoY to $174 million, and EPS declined 23.48% YoY to $1.76. Gross margin also dropped to 22.04%, down 8.36% YoY. Despite these declines, the company demonstrated resilience by exceeding revenue and EPS expectations.
Analyst sentiment is mixed. RBC Capital raised its price target to $68 and maintains an Outperform rating, while Barclays lowered its target to $70 but keeps an Overweight rating. JPMorgan remains cautious about the homebuilding sector, citing unfavorable demand/supply dynamics. Citizens initiated coverage with an Outperform rating and a $95 price target, citing valuation discounts relative to peers.
