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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
M/I Homes (MHO - Free Report) is a stock many investors are watching right now. MHO is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 5.63, while its industry has an average P/E of 7.91. Over the last 12 months, MHO's Forward P/E has been as high as 9.28 and as low as 4.74, with a median of 6.89.
Another notable valuation metric for MHO is its P/B ratio of 1.30. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. MHO's current P/B looks attractive when compared to its industry's average P/B of 1.38. MHO's P/B has been as high as 1.59 and as low as 0.99, with a median of 1.18, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MHO has a P/S ratio of 0.53. This compares to its industry's average P/S of 0.87.
Finally, our model also underscores that MHO has a P/CF ratio of 5.38. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. MHO's P/CF compares to its industry's average P/CF of 8.62. Within the past 12 months, MHO's P/CF has been as high as 7.40 and as low as 4.48, with a median of 6.
These are only a few of the key metrics included in M/I Homes's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, MHO looks like an impressive value stock at the moment.
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Is M/I Homes (MHO) a Great Value Stock Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
M/I Homes (MHO - Free Report) is a stock many investors are watching right now. MHO is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 5.63, while its industry has an average P/E of 7.91. Over the last 12 months, MHO's Forward P/E has been as high as 9.28 and as low as 4.74, with a median of 6.89.
Another notable valuation metric for MHO is its P/B ratio of 1.30. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. MHO's current P/B looks attractive when compared to its industry's average P/B of 1.38. MHO's P/B has been as high as 1.59 and as low as 0.99, with a median of 1.18, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MHO has a P/S ratio of 0.53. This compares to its industry's average P/S of 0.87.
Finally, our model also underscores that MHO has a P/CF ratio of 5.38. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. MHO's P/CF compares to its industry's average P/CF of 8.62. Within the past 12 months, MHO's P/CF has been as high as 7.40 and as low as 4.48, with a median of 6.
These are only a few of the key metrics included in M/I Homes's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, MHO looks like an impressive value stock at the moment.