Bear of the Day: Taylor Morrison Home Corporation (TMHC)
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AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA Stocks Bear of the Day: Taylor Morrison Home Corporation (TMHC) December 19, 2025 — 04:00 am EST Written by Benjamin Rains for Zacks-> Taylor Morrison Home Corporation TMHC is a national land developer and homebuilder giant that’s seen its earnings revisions tumble over the last year based on a multitude of headwinds.TMHC’s recent negative earnings per share (EPS) revisions earn the homebuilder a Zacks Rank #5 (Strong Sell). The company’s near-term outlook remains strained, given the industry and economy-wide setbacks it is facing.
Should Investors Stay Away from TMHC Stock for Now?Taylor Morrison is one of the largest U.S. homebuilders. The Scottsdale, Arizona-headquartered firm designs, builds, and sells single-family homes, ranging from first-time/entry-level to move-up and luxury/resort-style. TMHC posted booming revenue growth between 2013 and 2022, highlighted by 29% expansion in 2020 and 22% growth in 2021.The wild Covid-driven housing boom created a massive pull forward across the home-buying market. The market also benefited from a buyer-friendly low mortgage rate environment. The housing market has cooled significantly since then as home prices and mortgage rates soared.Taylor Morrison is projected to see its revenue fall 2.4% in 2025 and then fade 6.5% next year. Its adjusted earnings are expected to drop 5.5% and 12.5%, respectively. Image Source: Zacks Investment ResearchThe company’s earnings estimate has dropped 21% for Q4 since its last report and 13% for 2026. TMHC’s downbeat earnings revisions earn it a Zacks Rank #5 (Strong Sell) and extend its downward run that began in late 2024. That said, the homebuilder’s long-term outlook likely remains firmly intact given the dire need for more housing inventory in the U.S. “Encouragingly, net absorption paces improved each month during the quarter, in contrast to typical seasonal slowing into the end of summer as the improvement in mortgage interest rates helped spur activity,” CEO Sheryl Palmer said in prepared Q3 remarks in October.“Going forward, we believe strengthened consumer confidence is critical to further stabilizing demand, especially for discretionary home purchase decisions in our move-up and resort lifestyle communities.”In the near term, persistently high mortgage rates could continue to suppress demand, leading to slower home sales, increased cancellations, and pressure on margins if TMHC is forced to rely more on incentives to move inventory. Taylor Morrison doesn’t pay a dividend, and its Building Products - Home Builders industry is in the bottom 10% of 240 Zacks industries. This is worth stressing since studies have shown that roughly half of a stock's price movement can be attributed to a stock's industry group.Investors might want to stay away from Taylor Morrison for now since the housing market remains under stress. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportTaylor Morrison Home Corporation (TMHC) : Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Tags StocksInvestingHow to Invest Zacks Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com. More articles by this source-> Stocks mentioned TMHC More Related Articles This data feed is not available at this time. Data is currently not available • Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.