M/I Homes: BUILD a Position in This Stellar Stock

Housing is very sensitive to interest rates as you might imagine. So, it makes a lot of sense to add a home builder like M/I Homes (MHO) to the portfolio as rates are set to head lower. 

There were a lot of industry peers I could have selected instead. However, it is the impressiveness of their earnings momentum the past 2 years, when rates went higher, to help me appreciate how well the organization is run. 

This translated to industry leading share price gains for MHO (orange line) nearly 2X that of their peers which shows up loud and clear in the performance chart below:

The issue with price action it is a statement of the past. Looking forward they are expected to earn $20.76 EPS in 2025. That is up over 15% since their last quarterly earnings report. Note that they only beat by 11%...so it says that analysts see even more good times ahead for the company. 

Right now the top analyst covering the firm is Buck Horne from Raymond James (Top 9%) who sees $210 as the rightful destination for shares. That does sound nice from currently levels...but only equates to 10X next year’s earnings. That says to me upside is even more impressive making it very attractive to build a position in shares right now in the below $170. 

One of my favorite things about MHO is that it is underfollowed by Wall Street. Yet, with such impressive earnings momentum, and fundamentals in the top 5% of all stocks measured by the POWR Ratings...then I suspect more analysts will initiate coverage of MHO with Buy ratings. 

That fresh analyst coverage will most certainly be a catalyst for shares to break above $200...and keep running. 

Plain and simple, with interest rates set to drop there are few stocks more attractive than MHO. Thus, time to “build” a position in this quality home builder.  

What To Do Next?

M/I Homes (MHO) is just one of the 12 timely stocks found in my Zen Investor portfolio.

To learn more about my proven process to find more 100%+ stock winners...and to get your hands on the current top 12 recommendations…then all you need to do is click the link below. 

Discover the Zen Investor portfolio > 

Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)

Editor of the Zen Investor

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