**Taylor Morrison Home Corporation (TMHC) Faces Declining Earnings Outlook**
Taylor Morrison Home Corporation, a leading U.S. homebuilder based in Scottsdale, Arizona, has received a Zacks Rank #5 (Strong Sell) as its earnings projections have dropped significantly. The company’s earnings estimate for Q4 has decreased by 21%, while forecasts for 2026 have declined by 13%. TMHC is expected to see a 2.4% revenue decline in 2025 and a further 6.5% drop in 2026, accompanied by adjusted earnings falling 5.5% and 12.5%, respectively.
Despite a challenging housing market, exacerbated by rising mortgage rates and declining consumer demand, Taylor Morrison maintains a long-term positive outlook due to the pressing need for housing inventory in the U.S. According to CEO Sheryl Palmer, improved net absorption rates and a potential boost in consumer confidence may stabilize demand in the future. However, investors are advised to approach TMHC with caution as its industry remains in the bottom 10% of Zacks-rated groups.
