Back to top

Image: Bigstock

M/I Homes (MHO) Stock Slides as Market Rises: Facts to Know Before You Trade

Read MoreHide Full Article

The latest trading session saw M/I Homes (MHO - Free Report) ending at $168.80, denoting a -1.11% adjustment from its last day's close. This change lagged the S&P 500's daily gain of 0.25%. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq increased by 0.56%.

The homebuilder's stock has climbed by 3.72% in the past month, exceeding the Construction sector's gain of 3.49% and the S&P 500's gain of 1.65%.

The investment community will be paying close attention to the earnings performance of M/I Homes in its upcoming release. The company is predicted to post an EPS of $4.94, indicating a 2.49% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.13 billion, indicating a 7.71% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $19.76 per share and a revenue of $4.42 billion, demonstrating changes of +21.9% and +9.59%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for M/I Homes. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.95% higher. M/I Homes presently features a Zacks Rank of #2 (Buy).

With respect to valuation, M/I Homes is currently being traded at a Forward P/E ratio of 8.64. This expresses a discount compared to the average Forward P/E of 10.57 of its industry.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 41, putting it in the top 17% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


See More Zacks Research for These Tickers


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


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

Published in