M/I Homes (MHO) Laps the Stock Market: Here's Why
In the latest trading session, M/I Homes (MHO) closed at $119.59, marking a +0.64% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.09%. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq appreciated by 0.3%.
The the stock of homebuilder has fallen by 2.73% in the past month, leading the Construction sector's loss of 5% and undershooting the S&P 500's gain of 3.38%.
The investment community will be closely monitoring the performance of M/I Homes in its forthcoming earnings report. The company's upcoming EPS is projected at $4.79, signifying a 16.26% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.05 billion, up 3.71% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $18.18 per share and a revenue of $4.25 billion, representing changes of +12.15% and +5.39%, respectively, from the prior year.
Any recent changes to analyst estimates for M/I Homes should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, M/I Homes boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, M/I Homes is currently exchanging hands at a Forward P/E ratio of 6.54. For comparison, its industry has an average Forward P/E of 8.22, which means M/I Homes is trading at a discount to the group.
The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 74, this industry ranks in the top 30% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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M/I Homes, Inc. (MHO) : Free Stock Analysis Report
