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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is MI Homes (MHO - Free Report) . MHO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 3.23 right now. For comparison, its industry sports an average P/E of 5.67. Over the past year, MHO's Forward P/E has been as high as 9.28 and as low as 3.22, with a median of 4.91.
Another notable valuation metric for MHO is its P/B ratio of 0.89. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 0.99. Over the past 12 months, MHO's P/B has been as high as 1.59 and as low as 0.89, with a median of 1.21.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MHO has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.64.
Finally, investors will want to recognize that MHO has a P/CF ratio of 3.56. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 7.62. Within the past 12 months, MHO's P/CF has been as high as 7.05 and as low as 3.56, with a median of 5.14.
These figures are just a handful of the metrics value investors tend to look at, but they help show that MI Homes is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MHO feels like a great value stock at the moment.
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Is MI Homes (MHO) Stock Undervalued 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is MI Homes (MHO - Free Report) . MHO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 3.23 right now. For comparison, its industry sports an average P/E of 5.67. Over the past year, MHO's Forward P/E has been as high as 9.28 and as low as 3.22, with a median of 4.91.
Another notable valuation metric for MHO is its P/B ratio of 0.89. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 0.99. Over the past 12 months, MHO's P/B has been as high as 1.59 and as low as 0.89, with a median of 1.21.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MHO has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.64.
Finally, investors will want to recognize that MHO has a P/CF ratio of 3.56. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 7.62. Within the past 12 months, MHO's P/CF has been as high as 7.05 and as low as 3.56, with a median of 5.14.
These figures are just a handful of the metrics value investors tend to look at, but they help show that MI Homes is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MHO feels like a great value stock at the moment.