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M/I Homes (MHO) Moves 7.8% Higher: Will This Strength Last?

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M/I Homes (MHO - Free Report) shares rallied 7.8% in the last trading session to close at $90.05. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 7.3% gain over the past four weeks.

Shares of M/I Homes appreciated after the news that inflation declined in June. The consumer price index increased 3% year over year in June.

This homebuilder is expected to post quarterly earnings of $2.45 per share in its upcoming report, which represents a year-over-year change of -48.9%. Revenues are expected to be $822.8 million, down 20.9% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For M/I Homes, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on MHO going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

M/I Homes is part of the Zacks Building Products - Home Builders industry. Landsea Homes Corporation (LSEA - Free Report) , another stock in the same industry, closed the last trading session 0.5% higher at $10.48. LSEA has returned 37.8% in the past month.

For Landsea Homes Corporation, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.22. This represents a change of -69% from what the company reported a year ago. Landsea Homes Corporation currently has a Zacks Rank of #2 (Buy).


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