For today’s bulletin, we discuss the US housing market and provide a link to download a FREE STOCK REPORT on M/I Homes $MHO, one of out top-rated stocks in the Construction sector.

VALUATION WATCH: Overvalued stocks now make up 57.07% of our stocks assigned a valuation and 21.69% of those equities are calculated to be overvalued by 20% or more. Twelve sectors are calculated to be overvalued.

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US Housing Market
Photo by midiman

We had some unexpectedly good news on the housing front today with the release of the latest sales figures. For May, sales rose to the third highest level since the 20088 housing crisis and the median price of those homes hit an all-time record.

Analysts had expected a decline for the month, but they missed the mark as home sales increase just more than one percent. At a seasonally-adjusted rate, the US saw the sale of 5.62 million homes in May.

Supply has tightened, and that lower supply in the face of strong demand has caused prices to rise. In addition, mortgage-rates remain relatively low despite the recent Fed tightening.

Below, we present the latest data on Construction stocks from our Professional Stock Analysis Service. Top- five lists are provided for each category.  We applied some basic liquidity criteria–share price greater than $3 and average daily volume in excess of 100k shares.

Top-Five Construction Stocks–Short-Term Forecast Returns

Ticker Name Mkt Price Valuation (%) Last 12-M Return (%)
MHO M/I HOMES INC 27.79 10.82% 52.11%
CCS CENTURY COMMUNT 25 16.44% 40.13%
URI UTD RENTALS INC 103.91 1.40% 50.92%
TMHC TAYLOR MORRISON 24.4 24.89% 55.41%
MDC MDC HLDGS 35.18 15.42% 54.23%

Top-Five Construction Stocks–Momentum

Ticker Name Mkt Price Valuation (%) Last 12-M Return (%)
WLDN WILLDAN GROUP 30.6 82.93% 188.41%
STRL STERLING CONSTR 10.69 31.81% 108.38%
MTZ MASTEC INC 44.45 8.19% 88.51%
BZH BEAZER HOMES 13.09 -19.19% 70.22%
THO THOR INDS INC 105.43 1.25% 63.58%

Top-Five Construction Stocks–Composite Score

Ticker Name Mkt Price Valuation (%) Last 12-M Return (%)
CX CEMEX SA ADR 9.02 -31.26% 44.10%
URI UTD RENTALS INC 103.91 1.40% 50.92%
THO THOR INDS INC 105.43 1.25% 63.58%
PHM PULTE GROUP ONC 24.23 0.45% 26.93%
TOL TOLL BROTHERS 39.02 4.48% 40.56%

Top-Five Construction Stocks–Most Overvalued

Ticker Name Mkt Price Valuation (%) Last 12-M Return (%)
WLDN WILLDAN GROUP 30.6 82.93% 188.41%
IBP INSTALLED BUILD 53.8 66.92% 56.08%
STRL STERLING CONSTR 10.69 31.81% 108.38%
AAON AAON INC 36.85 26.55% 40.54%
TMHC TAYLOR MORRISON 24.4 24.89% 55.41%

Our top ranked comnstruction stock today is M/I Homes, Inc. (MHO). M/I Homes is one of the nation’s leading builders of single-family homes. Their homes are marketed and sold under the trade names M/I Homes and Showcase Homes. They have homebuilding operations in Columbus and Cincinnati, Ohio; Indianapolis, Indiana; Tampa, Orlando and Palm Beach County, Florida; Charlotte and Raleigh, North Carolina; Virginia and Maryland.

VALUENGINE RECOMMENDATION: ValuEngine continues its STRONG BUY recommendation o nM/I Homes, Inc. for 2017-06-20. Based on the information we have gathered and our resulting research, we feel that M/I Homes, Inc. has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE P/E Ratio and Price Sales Ratio.

Below is today’s data on M/I Homes, Inc. (MHO):

 

ValuEngine Forecast
Target
Price*
Expected
Return
1-Month 28.11 1.15%
3-Month 28.06 0.99%
6-Month 29.18 5.00%
1-Year 31.63 13.83%
2-Year 32.13 15.62%
3-Year 33.75 21.44%

 

Valuation & Rankings
Valuation 10.82% overvalued Valuation Rank(?) 36
1-M Forecast Return 1.15% 1-M Forecast Return Rank 99
12-M Return 52.11% Momentum Rank(?) 87
Sharpe Ratio 0.42 Sharpe Ratio Rank(?) 71
5-Y Avg Annual Return 12.59% 5-Y Avg Annual Rtn Rank 75
Volatility 29.93% Volatility Rank(?) 52
Expected EPS Growth 23.24% EPS Growth Rank(?) 59
Market Cap (billions) 0.68 Size Rank 57
Trailing P/E Ratio 11.07 Trailing P/E Rank(?) 90
Forward P/E Ratio 8.98 Forward P/E Ratio Rank 88
PEG Ratio 0.48 PEG Ratio Rank 60
Price/Sales 0.38 Price/Sales Rank(?) 88
Market/Book 1.01 Market/Book Rank(?) 79
Beta 1.23 Beta Rank 27
Alpha 0.23 Alpha Rank 83

 

DOWNLOAD A FREE SAMPLE OF OUR M/I HOMES (MHO) REPORT BY CLICKING HERE

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Article by ValuePenguin