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Are Investors Undervaluing MI Homes (MHO) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.
One company value investors might notice is MI Homes (MHO - Free Report) . MHO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.55. This compares to its industry's average Forward P/E of 11.07. MHO's Forward P/E has been as high as 8.92 and as low as 4.18, with a median of 6.80, all within the past year.
Finally, our model also underscores that MHO has a P/CF ratio of 8.97. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 10.66. Within the past 12 months, MHO's P/CF has been as high as 9.35 and as low as 4.26, with a median of 6.81.
These are just a handful of the figures considered in MI Homes's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MHO is an impressive value stock right now.
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Are Investors Undervaluing MI Homes (MHO) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.
One company value investors might notice is MI Homes (MHO - Free Report) . MHO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.55. This compares to its industry's average Forward P/E of 11.07. MHO's Forward P/E has been as high as 8.92 and as low as 4.18, with a median of 6.80, all within the past year.
Finally, our model also underscores that MHO has a P/CF ratio of 8.97. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 10.66. Within the past 12 months, MHO's P/CF has been as high as 9.35 and as low as 4.26, with a median of 6.81.
These are just a handful of the figures considered in MI Homes's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MHO is an impressive value stock right now.