The housing market looked bright earlier this year amid low interest rates, strong demand and limited supply. But the market stalled. It's showing renewed signs of strength and on Friday the Relative Strength (RS) Rating for highly ranked MI Homes (MHO) rose to 75, up from 70 the day before. But that bump up is only part of the company's story; other key ratings are top shelf. MI Homes stock was down early Friday amid market consolidation, but rebounded to close up about 1%.
XThe 75 RS Rating means that MI Homes stock has outperformed 75% of all stocks over the past year. Stocks that go on to make the biggest gains typically have an RS Rating of over 80 in the early stages of their moves. See if Columbus, Ohio-based MI Homes can continue to show renewed price strength and hit that benchmark.
Among other key ratings, MI Homes stock carries a strong 93 Composite Rating, of a best-possible 99.
IBD's Composite Rating combines five separate proprietary ratings of fundamental and technical performance into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
MI Homes' 99 EPS Rating shows excellent profit growth on a recent and long-term basis. And MI Homes stock's B- Accumulation/Distribution Rating on an A+ to E scale shows strong buying by institutional investors.
The builder of single-family homes and townhomes posted 89% earnings growth in its most recent quarter, to $3.58 per share, while sales rose 35% to $961 million.
MI Homes stock holds the No. 3 rank among its peers in the Building-Residential/Commercial industry group. Century Communities (CCS) and LGI Homes (LGIH) are also among the group's highest-rated stocks.
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While MI Homes stock is not near a proper entry right now, see if it goes on to provide a fresh buying opportunity, such as forming and breaking out of a proper chart pattern, such as a three-weeks-tight, or rebounding off its 50-day or 10-week line.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's unique Relative Strength Rating identifies share price performance with a 1 (worst) to 99 (best) score. The score shows how a stock's price movement over the last 52 weeks compares to all the other stocks in our database.
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