Market Performance Recap
On the latest trading day, M/I Homes (MHO) closed at $131.95, marking a 0.96% increase from its previous close. This gain, however, lagged behind the broader market’s performance. The S&P 500 index rose by 1.26%, while the Dow and Nasdaq indices appreciated by 0.8% and 1.77%, respectively.
Recent Performance of M/I Homes
In the past month, shares of M/I Homes have seen a decline of 18.22%. This decrease is in contrast to the Construction sector, which has lost 12.76% over the same period. The S&P 500 index has fared slightly better, with a loss of 2.82%.
Upcoming Earnings Disclosure
Investors are eagerly awaiting M/I Homes’ upcoming earnings report, scheduled for release on January 29, 2025. According to forecasts, the company is expected to report an EPS (Earnings Per Share) of $4.83, representing a notable increase of 31.97% from the corresponding quarter in the prior year.
Revenue Projections
Meanwhile, the Zacks Consensus Estimate for revenue projects net sales of $1.17 billion, which would mark a 20.12% growth from the same period last year. This indicates a promising outlook for M/I Homes’ business performance.
Analyzing Analyst Estimates
It is essential to monitor recent changes in analyst estimates for M/I Homes. These revisions often reflect current market trends and can have a significant impact on the company’s stock price. Our research has shown that positive estimate revisions are directly correlated with near-term stock prices.
Introducing the Zacks Rank System
To capitalize on this relationship, we have developed the Zacks Rank system, which incorporates these estimate changes into a practical rating system. The Zacks Rank ranges from #1 (Strong Buy) to #5 (Strong Sell), and its track record of outperformance is impressive. Since 1988, #1 stocks have generated an average annual return of +25%.
Current Zacks Rank
At present, M/I Homes features a Zacks Rank of #3 (Hold). This rating reflects the company’s current market position and performance.
Valuation Metrics
In terms of valuation, M/I Homes is currently trading at a Forward P/E ratio of 6.4. For comparison, its industry has an average Forward P/E of 7.77, indicating that M/I Homes is trading at a discount to the group.
Industry Performance
The Building Products – Home Builders industry is part of the Construction sector and carries a Zacks Industry Rank of 172. This ranking places it within the bottom 32% of over 250 industries. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups.
Investing in the Top-Performing Industries
Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. By focusing on these high-performing industries,
