What Is Tri Pointe Homes, Inc.'s (NYSE:TPH) Share Price Doing?

Tri Pointe Homes, Inc. (NYSE:TPH), is not the largest company out there, but it received a lot of attention from a substantial price increase on the NYSE over the last few months. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s take a look at Tri Pointe Homes’s outlook and value based on the most recent financial data to see if the opportunity still exists.

View our latest analysis for Tri Pointe Homes

Is Tri Pointe Homes Still Cheap?

Great news for investors – Tri Pointe Homes is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $33.10, but it is currently trading at US$23.45 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Tri Pointe Homes’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Can we expect growth from Tri Pointe Homes?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for Tri Pointe Homes, at least in the near future.

What This Means For You

Are you a shareholder? Although TPH is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. I recommend you think about whether you want to increase your portfolio exposure to TPH, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping tabs on TPH for some time, but hesitant on making the leap, I recommend you research further into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

If you want to dive deeper into Tri Pointe Homes, you'd also look into what risks it is currently facing. To that end, you should learn about the 2 warning signs we've spotted with Tri Pointe Homes (including 1 which makes us a bit uncomfortable).

If you are no longer interested in Tri Pointe Homes, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.