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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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
MI Homes (MHO - Free Report) is a stock many investors are watching right now. MHO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 5.35, while its industry has an average P/E of 8.52. MHO's Forward P/E has been as high as 7.13 and as low as 2.15, with a median of 5.23, all within the past year.
We should also highlight that MHO has a P/B ratio of 1.15. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. MHO's current P/B looks attractive when compared to its industry's average P/B of 1.37. Over the past 12 months, MHO's P/B has been as high as 1.22 and as low as 0.51, with a median of 0.78.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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 0.61. This compares to its industry's average P/S of 0.71.
Finally, our model also underscores that MHO has a P/CF ratio of 5.45. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. MHO's P/CF compares to its industry's average P/CF of 6.88. Within the past 12 months, MHO's P/CF has been as high as 5.77 and as low as 2.08, with a median of 3.28.
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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Should Value Investors Buy MI Homes (MHO) Stock?
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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
MI Homes (MHO - Free Report) is a stock many investors are watching right now. MHO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 5.35, while its industry has an average P/E of 8.52. MHO's Forward P/E has been as high as 7.13 and as low as 2.15, with a median of 5.23, all within the past year.
We should also highlight that MHO has a P/B ratio of 1.15. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. MHO's current P/B looks attractive when compared to its industry's average P/B of 1.37. Over the past 12 months, MHO's P/B has been as high as 1.22 and as low as 0.51, with a median of 0.78.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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 0.61. This compares to its industry's average P/S of 0.71.
Finally, our model also underscores that MHO has a P/CF ratio of 5.45. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. MHO's P/CF compares to its industry's average P/CF of 6.88. Within the past 12 months, MHO's P/CF has been as high as 5.77 and as low as 2.08, with a median of 3.28.
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.