12 Undervalued Cyclical Stocks to Buy Right Now

9. Taylor Morrison Home Corporation (NYSE:TMHC)

Forward P/E Ratio: 8

Earnings Growth: 16.18%

Number of Hedge Fund Holders: 30

Taylor Morrison Home Corporation (NYSE:TMHC) is a major homebuilder and land developer in the United States, headquartered in Arizona. It designs and constructs various types of homes, including single-family houses and multi-family units. The company caters to different market segments, such as first-time homebuyers, families looking to upgrade, and those seeking resort-style living. Taylor Morrison Home Corporation (NYSE:TMHC) operates across 11 states in high-demand areas, ensuring they reach a diverse range of customers.

The company delivered robust financial performance during the fiscal third quarter of 2024 amidst economic uncertainty and hurricane disruptions. It delivered 3,394 homes at an average price of $598,000, resulting in over $2 billion in revenue. The high demand and price resilience across its portfolio led earnings per diluted share up by 50% year-over-year. Moreover, the home closing revenue also increased 26%, with a gross margin of 24.8%.

Homebuyer demand remained solid, particularly in the East and Central regions, with a 9% increase in net orders year-over-year. The company noted that their resort lifestyle communities significantly contributed to revenue growth, despite challenges posed by hurricanes. Taylor Morrison Home Corporation (NYSE:TMHC) is one of the 12 undervalued cyclical stocks to buy right now.