One such stock that you may want to consider dropping is M/I Homes, Inc. (MHO), which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. A Zacks Rank #5 (Strong Sell) further confirms weakness in MHO.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 2 estimates moving down in the past 30 days, compared with no upward revisions. This trend has caused the consensus estimate to trend lower, going from $1.94 a share a month ago to its current level of $1.52.
Also, for the current quarter, M/I Homes has seen 1 downward estimate revision versus no revision in the opposite direction, dragging the consensus estimate down to 17 cents a share from 23 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 12.6% in the past month.
So it may not be a good decision to keep this stock in your portfolio anymore, at least if you don’t have a long time horizon to wait.
If you are still interested in the Building-Resident/Commercial sector, you may instead consider a better-ranked stock – TRI Pointe Homes, Inc. (TPH). The stock currently holds a Zacks Rank #1 (Strong Buy) and may be better selection at this time.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment