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M/I Homes (MHO) Stock Sinks As Market Gains: What You Should Know

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M/I Homes (MHO - Free Report) closed at $59.83 in the latest trading session, marking a -0.76% move from the prior day. This change lagged the S&P 500's daily gain of 0.74%.

Heading into today, shares of the homebuilder had gained 0.08% over the past month, lagging the Construction sector's gain of 0.17% and the S&P 500's gain of 1.34% in that time.

Investors will be hoping for strength from MHO as it approaches its next earnings release, which is expected to be October 27, 2021. On that day, MHO is projected to report earnings of $3.55 per share, which would represent year-over-year growth of 41.43%. Meanwhile, our latest consensus estimate is calling for revenue of $975.6 million, up 15.06% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $13.83 per share and revenue of $3.79 billion, which would represent changes of +63.28% and +24.46%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for MHO. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection remained stagnant. MHO is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, MHO is holding a Forward P/E ratio of 4.36. This represents a discount compared to its industry's average Forward P/E of 6.8.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 33% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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