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M/I Homes (MHO) Stock Sinks As Market Gains: Here's Why

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In the latest market close, M/I Homes (MHO - Free Report) reached $133.97, with a -1.78% movement compared to the previous day. This change lagged the S&P 500's daily gain of 1.09%. Elsewhere, the Dow saw an upswing of 1.18%, while the tech-heavy Nasdaq appreciated by 1.03%.

The homebuilder's stock has dropped by 12.67% in the past month, falling short of the Construction sector's loss of 8.88% and the S&P 500's loss of 0.71%.

The upcoming earnings release of M/I Homes will be of great interest to investors. The company's earnings report is expected on January 29, 2025. In that report, analysts expect M/I Homes to post earnings of $4.83 per share. This would mark year-over-year growth of 31.97%. In the meantime, our current consensus estimate forecasts the revenue to be $1.17 billion, indicating a 20.12% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $19.83 per share and a revenue of $4.47 billion, demonstrating changes of +22.33% and +10.77%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for M/I Homes. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. M/I Homes is currently a Zacks Rank #3 (Hold).

Looking at its valuation, M/I Homes is holding a Forward P/E ratio of 6.88. This indicates a discount in contrast to its industry's Forward P/E of 7.94.

The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 146, positioning it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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