M/I Homes (MHO) closed at $135.93 in the latest trading session, marking a -1.81% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.74%. Meanwhile, the Dow experienced a drop of 1.21%, and the technology-dominated Nasdaq saw a decrease of 0.89%.
Prior to today's trading, shares of the homebuilder had gained 7.74% outpaced the Construction sector's loss of 1.64% and the S&P 500's gain of 5.39%.
Analysts and investors alike will be keeping a close eye on the performance of M/I Homes in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $3.17, reflecting a 28.28% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.18 billion, up 1.84% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.6 per share and a revenue of $4.37 billion, representing changes of -14.52% and -0.98%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for M/I Homes. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. M/I Homes is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, M/I Homes is currently trading at a Forward P/E ratio of 10.99. For comparison, its industry has an average Forward P/E of 13.99, which means M/I Homes is trading at a discount to the group.
The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 212, finds itself in the bottom 14% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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M/I Homes, Inc. (MHO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).