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Are Investors Undervaluing MI Homes (MHO) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
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.
MI 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 is trading with P/E ratio of 6.33 right now. For comparison, its industry sports an average P/E of 10.06. Over the past year, MHO's Forward P/E has been as high as 6.33 and as low as 2.13, with a median of 3.92.
Another notable valuation metric for MHO is its P/B ratio of 1.03. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.39. Over the past year, MHO's P/B has been as high as 1.03 and as low as 0.51, with a median of 0.70.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.54. This compares to its industry's average P/S of 0.74.
Finally, we should also recognize that MHO has a P/CF ratio of 4.41. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. MHO's current P/CF looks attractive when compared to its industry's average P/CF of 6.36. Over the past year, MHO's P/CF has been as high as 4.41 and as low as 2.08, with a median of 2.90.
These are only a few of the key metrics included in MI 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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Are Investors Undervaluing MI Homes (MHO) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
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.
MI 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 is trading with P/E ratio of 6.33 right now. For comparison, its industry sports an average P/E of 10.06. Over the past year, MHO's Forward P/E has been as high as 6.33 and as low as 2.13, with a median of 3.92.
Another notable valuation metric for MHO is its P/B ratio of 1.03. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.39. Over the past year, MHO's P/B has been as high as 1.03 and as low as 0.51, with a median of 0.70.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.54. This compares to its industry's average P/S of 0.74.
Finally, we should also recognize that MHO has a P/CF ratio of 4.41. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. MHO's current P/CF looks attractive when compared to its industry's average P/CF of 6.36. Over the past year, MHO's P/CF has been as high as 4.41 and as low as 2.08, with a median of 2.90.
These are only a few of the key metrics included in MI 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.