Zacks Investment Ideas Feature Highlights: M/I Homes, Lennar, KB Home, Lyon William Homes And M.D.C. Holdings

For Immediate Release

Chicago, IL – June 22, 2017 – Today, Zacks Investment Ideas feature highlights Features: M/I Homes (NYSE: MHO – Free Report ), Lennar (NYSE: LEN – Free Report ), KB Home (NYSE: KBH – Free Report ), Lyon William Homes (NYSE: WLH – Free Report ) and M.D.C. Holdings (NYSE: MDC – Free Report ).

Why Home Builder Stocks Are Hot Right Now

I often look for strong stocks in strong sectors by looking at the Zacks Industry Rank page. The semiconductor equipment stocks has been at the top for some time now, as those stocks have seen plenty of positive earnings estimate revisions.

One industry that is seeing some negative revisions to earnings estimates but has seen stock price increases is the home builder industry. On a YTD basis, the home builders are crushing it, up 27% compared to about 10% for the IVV (S&P 500). The industry rank for the home builders is 48 of 256 so that puts it in the top 19%.

Only One #1

The group has only one stock that is a Zacks Rank #1 (Strong Buy) and that is M/I Homes (NYSE: MHO – Free Report ) which saw a huge move on the earnings release back in late April. The company posted a 44% positive earnings surprise and has traded over $29 following the report as was stuck under $25 before the release.

That report drove the lone positive earnings estimate revision, but it was a big one. The 2017 Zacks Consensus Estimate moved from $2.60 to $3.05 and the 2018 number kicked higher to $3.27 from $2.90.

Four #2’s

Lennar (NYSE:LEN – Free Report ) just reported good earnings so there is a chance that this Zacks Rank #2 (Buy) could see estimates move even higher and that would help to push the Zacks Rank up to a Zacks Rank #1 (Strong Buy).

LEN is joined by KB Home (NYSE: KBH – Free Report ), Lyon William Homes (NYSE: WLH – Free Report ) and M.D.C. Holdings (NYSE: MDC – Free Report ) as Zacks Rank #2 (Buy) stocks from this industry.

One More Report

About a week from today we have KB Home reporting earnings. The company is slated to share the May 2017 quarter on June 27 after the close. The Zacks Consensus Estimate is calling for revenue of $922M and EPS of $0.26.

The previous quarter was a beat of $0.01 and a 2% positive revenue surprise and that helped push the stock higher by 2.6% in the session following the release.

KBH has a 13.9x forward multiple which is basically in line with the industry average of 13.4x. The 1.1x book multiple is just slightly below the 1.7x industry average. The 0.5x sales multiple is also below the 0.8x industry average.

Looking for Ideas with Even Greater Upside?

Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more.

Click here for a peek at this private information>>

Zacks' 2017 IPO Watch List

Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.

One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>

Get the full Report on MHO – FREE

Get the full Report on LEN – FREE

Get the full Report on KBH – FREE

Get the full Report on WLH – FREE

Get the full Report on MDC – FREE

Follow us on Twitter: https://twitter.com/ZacksResearch

Join us on Facebook (NASDAQ:FB): https://www.facebook.com/ZacksInvestmentResearch

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com/performance

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.