Business Guides

US Housing Market Heats Up Again

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

TickerNameMkt PriceValuation (%)Last 12-M Return (%)
MHOM/I HOMES INC27.7910.82%52.11%
CCSCENTURY COMMUNT2516.44%40.13%
URIUTD RENTALS INC103.911.40%50.92%
TMHCTAYLOR MORRISON24.424.89%55.41%
MDCMDC HLDGS35.1815.42%54.23%

Top-Five Construction Stocks–Momentum

TickerNameMkt PriceValuation (%)Last 12-M Return (%)
WLDNWILLDAN GROUP30.682.93%188.41%
STRLSTERLING CONSTR10.6931.81%108.38%
MTZMASTEC INC44.458.19%88.51%
BZHBEAZER HOMES13.09-19.19%70.22%
THOTHOR INDS INC105.431.25%63.58%

Top-Five Construction Stocks–Composite Score

TickerNameMkt PriceValuation (%)Last 12-M Return (%)
CXCEMEX SA ADR9.02-31.26%44.10%
URIUTD RENTALS INC103.911.40%50.92%
THOTHOR INDS INC105.431.25%63.58%
PHMPULTE GROUP ONC24.230.45%26.93%
TOLTOLL BROTHERS39.024.48%40.56%

Top-Five Construction Stocks–Most Overvalued

TickerNameMkt PriceValuation (%)Last 12-M Return (%)
WLDNWILLDAN GROUP30.682.93%188.41%
IBPINSTALLED BUILD53.866.92%56.08%
STRLSTERLING CONSTR10.6931.81%108.38%
AAONAAON INC36.8526.55%40.54%
TMHCTAYLOR MORRISON24.424.89%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-Month28.111.15%
3-Month28.060.99%
6-Month29.185.00%
1-Year31.6313.83%
2-Year32.1315.62%
3-Year33.7521.44%

 

Valuation & Rankings
Valuation10.82% overvaluedValuation Rank(?)36
1-M Forecast Return1.15%1-M Forecast Return Rank99
12-M Return52.11%Momentum Rank(?)87
Sharpe Ratio0.42Sharpe Ratio Rank(?)71
5-Y Avg Annual Return12.59%5-Y Avg Annual Rtn Rank75
Volatility29.93%Volatility Rank(?)52
Expected EPS Growth23.24%EPS Growth Rank(?)59
Market Cap (billions)0.68Size Rank57
Trailing P/E Ratio11.07Trailing P/E Rank(?)90
Forward P/E Ratio8.98Forward P/E Ratio Rank88
PEG Ratio0.48PEG Ratio Rank60
Price/Sales0.38Price/Sales Rank(?)88
Market/Book1.01Market/Book Rank(?)79
Beta1.23Beta Rank27
Alpha0.23Alpha Rank83

 

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

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Article by ValuePenguin