M/I Homes (MHO) ended the recent trading session at $145.04, demonstrating a +2.65% change from the preceding day's closing price. This move outpaced the S&P 500's daily loss of 0.57%. Elsewhere, the Dow saw an upswing of 0.64%, while the tech-heavy Nasdaq depreciated by 1.15%.
Prior to today's trading, shares of the homebuilder had gained 14.05% outpaced the Construction sector's gain of 4.86% and the S&P 500's gain of 2.14%.
The investment community will be closely monitoring the performance of M/I Homes in its forthcoming earnings report. The company's upcoming EPS is projected at $3.17, signifying a 28.28% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.18 billion, reflecting a 1.84% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.6 per share and revenue of $4.37 billion, indicating changes of -14.52% and -0.98%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for M/I Homes. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. M/I Homes is currently a Zacks Rank #5 (Strong Sell).
With respect to valuation, M/I Homes is currently being traded at a Forward P/E ratio of 11.21. This represents a discount compared to its industry average Forward P/E of 14.67.
The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 228, positioning it in the bottom 7% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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).