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

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M/I Homes (MHO - Free Report) closed the most recent trading day at $63.37, moving +0.81% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.31%. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, added 0.48%.

Prior to today's trading, shares of the homebuilder had gained 3.64% over the past month. This has lagged the Construction sector's gain of 4.46% and outpaced the S&P 500's loss of 0.04% in that time.

Wall Street will be looking for positivity from M/I Homes as it approaches its next earnings report date. The company is expected to report EPS of $3.48, up 17.97% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $980.5 million, up 8.17% from the year-ago period.

MHO's full-year Zacks Consensus Estimates are calling for earnings of $12.94 per share and revenue of $3.67 billion. These results would represent year-over-year changes of +52.77% and +20.63%, respectively.

Investors should also note any recent changes to analyst estimates for M/I Homes. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. M/I Homes is currently a Zacks Rank #3 (Hold).

Investors should also note M/I Homes's current valuation metrics, including its Forward P/E ratio of 4.86. For comparison, its industry has an average Forward P/E of 6.94, which means M/I Homes is trading at a discount to the group.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 68, putting it in the top 27% of all 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. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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