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

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M/I Homes (MHO - Free Report) closed at $62.18 in the latest trading session, marking a +0.55% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.26%. Meanwhile, the Dow lost 0.16%, and the Nasdaq, a tech-heavy index, lost 0.04%.

Prior to today's trading, shares of the homebuilder had gained 3.08% over the past month. This has lagged the Construction sector's gain of 6.68% and the S&P 500's gain of 4.82% in that time.

Investors will be hoping for strength from M/I Homes as it approaches its next earnings release. The company is expected to report EPS of $3.48, up 17.97% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $980.5 million, up 8.17% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $12.94 per share and revenue of $3.67 billion, which would represent changes of +52.77% and +20.63%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for M/I Homes. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. M/I Homes is currently a Zacks Rank #3 (Hold).

In terms of valuation, M/I Homes is currently trading at a Forward P/E ratio of 4.78. Its industry sports an average Forward P/E of 6.93, so we 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. This group has a Zacks Industry Rank of 80, putting it in the top 32% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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