M/I Homes (MHO) Declines More Than Market: Some Information for Investors

In the latest trading session, M/I Homes (MHO) closed at $129.85, marking a -2.41% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.08%. At the same time, the Dow lost 0.61%, and the tech-heavy Nasdaq gained 0.08%.

Prior to today's trading, shares of the homebuilder had lost 8.49% was narrower than the Construction sector's loss of 9.08% and lagged the S&P 500's loss of 2.16%.

Investors will be eagerly watching for the performance of M/I Homes in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.64, reflecting a 33.67% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $929.65 million, reflecting a 4.76% fall from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.63 per share and a revenue of $4.48 billion, indicating changes of -7.53% and +1.36%, respectively, from the former year.

Investors should also pay attention to any latest changes in 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. M/I Homes is currently a Zacks Rank #4 (Sell).

Investors should also note M/I Homes's current valuation metrics, including its Forward P/E ratio of 9.76. This denotes a discount relative to the industry average Forward P/E of 12.93.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 233, putting it in the bottom 5% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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M/I Homes, Inc. (MHO): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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