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Why You Should Add M.D.C. Holdings to Your Portfolio Now
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The housing market has lately been catching eye in Wall Street. One such company cashing in on the favorable backdrop is M.D.C. Holdings, Inc. . The company is engaged in construction, sale and related financing of residential housing and acquisition and development of land for use in homebuilding activities.
Also, homebuilding industry finds a place in the top 17% of the Zacks Industry Rank. A good industry rank supports growth. In fact, year to date, the Building-Residential/Commercial industry has widely outperformed the broader market (S&P 500), as you can see below:
Let us delve deeper into the other factors which make this Zacks Rank #2 (Buy) stock a lucrative pick.
Stock Price Movement: M.D.C. Holdings’ shares have gained 32% year to date, compared with the Zacks categorized Building Residential/Commercial industry’s growth of 23%. That said, we have noticed that M.D.C. Holdings has outperformed the industry in the 12-week and 52-week frame. The overall improvement in the U.S. economy along with the improving housing momentum is expected to drive top-line growth for the homebuilders in 2017.
Earnings History & Growth: M.D.C. Holdings has put up a historical EPS growth rate (average trailing 12-month EPS growth rate in the last 3–5 years of actual earnings) of 34%, compared with the industry average of 18.9%.
The company’s 2017 earnings is looking to grow 27.1%, while the Zacks categorized Building Residential/Commercial industry’s earnings are likely to grow 17.3%.
Notably, the company’s sales growth in 2017 is projected to be about 13.1%.
Valuation Looks Rational: We find the price-to-book ratio as the best multiple for valuing homebuilders because of their asset-driven nature. M.D.C. Holdings currently has a trailing 12 month P/B ratio of 1.31, comparing favorably with the industry’s P/B ratio of 1.65. Hence, its lower-than-market positioning hints at more upside in the upcoming quarters.
VGM Score: M.D.C. Holdings has a VGM Score of 'A'. Our VGM Score identifies stocks that have the most attractive value, growth, and momentum characteristics. In fact, our research shows that stocks with VGM Scores of 'A' or 'B' when combined with a Zacks Rank #1 (Strong Buy) or 2 make solid investment choices.
Other Stocks to Consider
Other top-ranked stocks in the industry include M/I Homes, Inc. (MHO - Free Report) , KB Home (KBH - Free Report) and Lyon William Homes .
KB Home, a Zacks Rank #2 stock, is expected to witness 43.3% growth in fiscal 2017 earnings.
Lyon William, also a Zacks Rank #2 stock, is expected to witness 38.4% growth in 2017 earnings.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
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Why You Should Add M.D.C. Holdings to Your Portfolio Now
The housing market has lately been catching eye in Wall Street. One such company cashing in on the favorable backdrop is M.D.C. Holdings, Inc. . The company is engaged in construction, sale and related financing of residential housing and acquisition and development of land for use in homebuilding activities.
Also, homebuilding industry finds a place in the top 17% of the Zacks Industry Rank. A good industry rank supports growth. In fact, year to date, the Building-Residential/Commercial industry has widely outperformed the broader market (S&P 500), as you can see below:
Let us delve deeper into the other factors which make this Zacks Rank #2 (Buy) stock a lucrative pick.
Stock Price Movement: M.D.C. Holdings’ shares have gained 32% year to date, compared with the Zacks categorized Building Residential/Commercial industry’s growth of 23%. That said, we have noticed that M.D.C. Holdings has outperformed the industry in the 12-week and 52-week frame. The overall improvement in the U.S. economy along with the improving housing momentum is expected to drive top-line growth for the homebuilders in 2017.
Earnings History & Growth: M.D.C. Holdings has put up a historical EPS growth rate (average trailing 12-month EPS growth rate in the last 3–5 years of actual earnings) of 34%, compared with the industry average of 18.9%.
The company’s 2017 earnings is looking to grow 27.1%, while the Zacks categorized Building Residential/Commercial industry’s earnings are likely to grow 17.3%.
Notably, the company’s sales growth in 2017 is projected to be about 13.1%.
Valuation Looks Rational: We find the price-to-book ratio as the best multiple for valuing homebuilders because of their asset-driven nature. M.D.C. Holdings currently has a trailing 12 month P/B ratio of 1.31, comparing favorably with the industry’s P/B ratio of 1.65. Hence, its lower-than-market positioning hints at more upside in the upcoming quarters.
VGM Score: M.D.C. Holdings has a VGM Score of 'A'. Our VGM Score identifies stocks that have the most attractive value, growth, and momentum characteristics. In fact, our research shows that stocks with VGM Scores of 'A' or 'B' when combined with a Zacks Rank #1 (Strong Buy) or 2 make solid investment choices.
Other Stocks to Consider
Other top-ranked stocks in the industry include M/I Homes, Inc. (MHO - Free Report) , KB Home (KBH - Free Report) and Lyon William Homes .
M/I Homes sports a Zacks Rank #1 (Strong Buy). Full-year 2017 earnings for the company are expected to increase 36.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
KB Home, a Zacks Rank #2 stock, is expected to witness 43.3% growth in fiscal 2017 earnings.
Lyon William, also a Zacks Rank #2 stock, is expected to witness 38.4% growth in 2017 earnings.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>