The latest trading session saw M/I Homes (MHO) ending at $121.10, denoting a -0.39% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.55% for the day. On the other hand, the Dow registered a gain of 0.52%, and the technology-centric Nasdaq increased by 0.7%.
Heading into today, shares of the homebuilder had gained 1.25% over the past month, outpacing the Construction sector's loss of 8.2% and the S&P 500's loss of 5.56% in that time.
Investors will be eagerly watching for the performance of M/I Homes in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $4.16, reflecting a 12.97% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.12 billion, indicating a 7.09% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $18.44 per share and revenue of $4.67 billion, which would represent changes of -6.44% and +3.61%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for M/I Homes. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, M/I Homes holds a Zacks Rank of #4 (Sell).
Looking at valuation, M/I Homes is presently trading at a Forward P/E ratio of 6.59. Its industry sports an average Forward P/E of 8.16, so one might conclude that M/I Homes is trading at a discount comparatively.
The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 227, this industry ranks in the bottom 10% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
M/I Homes, Inc. (MHO) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.