Taylor Morrison Home Corp. (TMHC)

Our PAST TOP PICK with TMHC has triggered its stop at $65.  To remain disciplined, we recommend covering the position at this time.  

Our PAST TOP PICK with TMHC is progressing well.  To remain disciplined, we recommend trailing up the stop (from $57) to $65 at this time.  

Our PAST TOP PICK with TMHC is progressing well.  To remain disciplined, we recommend trailing up the stop (from $52) to $57 at this time.  

We reiterate this US home builder as a TOP PICK.  Recently reported earnings showed revenue growth of 11% with margins of 25%.  It trades at 7x earnings, under book value and supports a 16% ROE.  It is prudently using some cash reserves to buyback shares and retire debt.  We continue to recommend a stop at $52.00, looking to achieve $73.50 -- upside potential of 26%.  Yield 0%

Housing starts have slowed in the US due to tariff uncertainty; however, with trade talks with Canada getting underway in a positive way the fear of rising home building costs may be subsiding.  It trades at 7x earnings, at book value and supports a 16% ROE.  We recommend trailing up the stop (from $47) to $52, looking to achieve $73 -- upside potential of 25%.  Yield 0%

New home building was on the rise in the US again in February.  The company expects to build 20,000 home annually thru to 2028 while supporting ROE and margin over 15%.  We like that cash reserves are growing, while shares are aggressively bought back and debt is retired.  It trades at 7x earnings, 1.1x book and supports a ROE of 15%.  We recommend setting a stop-loss at $47, looking to achieve $81 — upside potential over 30%.  Yield 0%