Back to top

Image: Bigstock

Is MI Homes (MHO) Outperforming Other Construction Stocks This Year?

Read MoreHide Full Article

Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Has M/I Homes (MHO - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question.

M/I Homes is one of 99 companies in the Construction group. The Construction group currently sits at #1 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. M/I Homes is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for MHO's full-year earnings has moved 36.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, MHO has moved about 93.3% on a year-to-date basis. At the same time, Construction stocks have gained an average of 26.9%. This shows that M/I Homes is outperforming its peers so far this year.

Meritage Homes (MTH - Free Report) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 40%.

In Meritage Homes' case, the consensus EPS estimate for the current year increased 27.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, M/I Homes belongs to the Building Products - Home Builders industry, a group that includes 19 individual companies and currently sits at #4 in the Zacks Industry Rank. On average, this group has gained an average of 40.5% so far this year, meaning that MHO is performing better in terms of year-to-date returns. Meritage Homes is also part of the same industry.

Going forward, investors interested in Construction stocks should continue to pay close attention to M/I Homes and Meritage Homes as they could maintain their solid performance.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Meritage Homes Corporation (MTH) - free report >>

M/I Homes, Inc. (MHO) - free report >>

Published in