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Are Investors Undervaluing MI Homes (MHO) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is MI Homes (MHO - Free Report) . MHO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 2.42. This compares to its industry's average Forward P/E of 5.20. Over the last 12 months, MHO's Forward P/E has been as high as 4.73 and as low as 2.12, with a median of 2.83.
We should also highlight that MHO has a P/B ratio of 0.61. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 0.96. Over the past 12 months, MHO's P/B has been as high as 1.22 and as low as 0.54, with a median of 0.77.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MHO has a P/S ratio of 0.28. This compares to its industry's average P/S of 0.38.
Finally, our model also underscores that MHO has a P/CF ratio of 2.55. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 3.98. Within the past 12 months, MHO's P/CF has been as high as 5.09 and as low as 2.27, with a median of 3.19.
These are only a few of the key metrics included in MI Homes's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, MHO looks like an impressive value stock at the moment.
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Are Investors Undervaluing MI Homes (MHO) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is MI Homes (MHO - Free Report) . MHO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 2.42. This compares to its industry's average Forward P/E of 5.20. Over the last 12 months, MHO's Forward P/E has been as high as 4.73 and as low as 2.12, with a median of 2.83.
We should also highlight that MHO has a P/B ratio of 0.61. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 0.96. Over the past 12 months, MHO's P/B has been as high as 1.22 and as low as 0.54, with a median of 0.77.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MHO has a P/S ratio of 0.28. This compares to its industry's average P/S of 0.38.
Finally, our model also underscores that MHO has a P/CF ratio of 2.55. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 3.98. Within the past 12 months, MHO's P/CF has been as high as 5.09 and as low as 2.27, with a median of 3.19.
These are only a few of the key metrics included in MI Homes's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, MHO looks like an impressive value stock at the moment.