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Is MI Homes (MHO) Stock Outpacing Its Construction Peers This Year?

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The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. M/I Homes (MHO - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.

M/I Homes is a member of our Construction group, which includes 91 different companies and currently sits at #7 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. M/I Homes is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for MHO's full-year earnings has moved 8.7% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, MHO has returned 21.3% so far this year. Meanwhile, the Construction sector has returned an average of 20.2% on a year-to-date basis. This means that M/I Homes is performing better than its sector in terms of year-to-date returns.

Another Construction stock, which has outperformed the sector so far this year, is Taylor Morrison Home (TMHC - Free Report) . The stock has returned 29% year-to-date.

The consensus estimate for Taylor Morrison Home's current year EPS has increased 7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, M/I Homes belongs to the Building Products - Home Builders industry, a group that includes 17 individual companies and currently sits at #42 in the Zacks Industry Rank. Stocks in this group have gained about 28.9% so far this year, so MHO is slightly underperforming its industry this group in terms of year-to-date returns. Taylor Morrison Home 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 Taylor Morrison Home as they could maintain their solid performance.


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