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Are Investors Undervaluing MI Homes (MHO) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
MI Homes (MHO - Free Report) is a stock many investors are watching right now. MHO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 6.71 right now. For comparison, its industry sports an average P/E of 9.68. MHO's Forward P/E has been as high as 8.57 and as low as 4.18, with a median of 6.74, all within the past year.
Another notable valuation metric for MHO is its P/B ratio of 1.28. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.61. Within the past 52 weeks, MHO's P/B has been as high as 1.59 and as low as 0.86, with a median of 1.21.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MHO has a P/S ratio of 0.85. This compares to its industry's average P/S of 0.98.
Finally, we should also recognize that MHO has a P/CF ratio of 6.82. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 8.91. Over the past year, MHO's P/CF has been as high as 8.25 and as low as 3.85, with a median of 5.98.
Value investors will likely look at more than just these metrics, but the above data helps show that MI Homes is likely undervalued currently. And when considering the strength of its earnings outlook, MHO sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing MI Homes (MHO) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
MI Homes (MHO - Free Report) is a stock many investors are watching right now. MHO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 6.71 right now. For comparison, its industry sports an average P/E of 9.68. MHO's Forward P/E has been as high as 8.57 and as low as 4.18, with a median of 6.74, all within the past year.
Another notable valuation metric for MHO is its P/B ratio of 1.28. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.61. Within the past 52 weeks, MHO's P/B has been as high as 1.59 and as low as 0.86, with a median of 1.21.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MHO has a P/S ratio of 0.85. This compares to its industry's average P/S of 0.98.
Finally, we should also recognize that MHO has a P/CF ratio of 6.82. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 8.91. Over the past year, MHO's P/CF has been as high as 8.25 and as low as 3.85, with a median of 5.98.
Value investors will likely look at more than just these metrics, but the above data helps show that MI Homes is likely undervalued currently. And when considering the strength of its earnings outlook, MHO sticks out at as one of the market's strongest value stocks.