Implied XSMO Analyst Target Price: $76
ETF Analyst Target Price Overview: The Invesco S&P SmallCap Momentum ETF (XSMO) has an implied analyst target price of $75.69, indicating a potential upside of 13.01% from its current trading price of $66.98.
Individual Holdings Analysis: Notable underlying holdings such as M/I Homes Inc, Innovative Industrial Properties Inc, and CoreCivic Inc show significant upside potential compared to their average analyst target prices, raising questions about the validity of these targets amidst market conditions.
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M/I Homes Reports Strong 2025 Earnings Amid Market Challenges
- Performance Highlights: M/I Homes delivered 8,921 homes in 2025 with revenue of $4.4 billion, demonstrating resilience in a challenging market despite a 20% decline in pre-tax income, indicating strong financial health.
- Margin Pressure: The gross margin for 2025 was 23.0%, and 24.4% excluding $59 million in inventory and warranty charges, reflecting a 220 basis point decline from 2024 due to rising incentives and lot costs impacting profitability.
- Sales Trends: New contracts increased by 9% year-over-year in Q4, with a 13% rise in the Southern Region, indicating a gradual recovery in market demand, although the share of first-time buyers decreased, highlighting ongoing challenges.
- Share Buybacks: The company repurchased $50 million in stock during Q4 and $200 million for the year, reflecting management's confidence in future growth while maintaining a strong balance sheet with $689 million in cash.
M/I Homes Q4 Earnings Report Analysis
- Earnings Miss: M/I Homes reported a Q4 GAAP EPS of $2.39, missing expectations by $1.49, indicating pressure on profitability that could affect investor confidence.
- Revenue Growth: Despite a 5% year-over-year decline to $1.15 billion, revenue exceeded market expectations by $40 million, demonstrating the company's resilience in challenging conditions.
- New Contracts Increase: New contracts rose by 9% to 1,921 homes, reflecting a rebound in market demand that may lay the groundwork for future revenue growth.
- Delivery Decline: Homes delivered decreased by 4% to 2,301, highlighting challenges in the production and delivery chain that could impact the company's market share and customer satisfaction.
M/I Homes Reports 2025 Financial Results with Declining Net Income
- Declining Financial Performance: In Q4 2025, M/I Homes reported pre-tax income of $80.6 million and net income of $64.0 million ($2.39 per diluted share), reflecting a significant drop from Q4 2024's pre-tax income of $170.6 million and net income of $133.5 million, indicating challenges in the current market.
- Reduced Deliveries: The company delivered 2,301 homes in Q4 2025, a 4% decrease from 2,402 in Q4 2024, and a total of 8,921 homes for the year, down 1% year-over-year, highlighting sales pressure amid weak new home demand.
- New Contracts Growth: Despite the decline in deliveries, new contracts increased by 9% in Q4 2025 to 1,921, suggesting that the company still possesses some market appeal, potentially setting the stage for future performance recovery.
- Strong Financial Health: As of December 31, 2025, M/I Homes achieved record shareholders' equity of $3.2 billion and cash reserves of $689 million with no borrowings, demonstrating robust financial stability in a challenging market environment.
M/I Homes to Announce Q4 Earnings on January 28
- Earnings Announcement Schedule: M/I Homes is set to release its Q4 earnings on January 28 before market open, with a consensus EPS estimate of $3.88, reflecting a 17.6% year-over-year decline, indicating potential challenges the company faces.
- Revenue Expectations Decline: Analysts forecast that M/I Homes will generate $1.11 billion in revenue for Q4, an 8.3% year-over-year decrease, suggesting sales pressures in the current economic environment.
- Historical Performance: Over the past two years, M/I Homes has beaten EPS estimates 75% of the time and revenue estimates 75% of the time, demonstrating the company's stability in financial forecasting.
- Market Analysis Focus: Despite facing challenges, Seeking Alpha's Quant Rating maintains a focus on M/I Homes, indicating potential optimism in the market regarding its future performance.
M/I Homes (MHO) Declines More Sharply Than the Overall Market: Key Insights for Investors
Stock Performance: M/I Homes (MHO) closed at $133.26, down 1.24%, underperforming the S&P 500's loss of 0.24; however, the stock has risen 8.73% over the past month, outperforming both the Construction sector and the S&P 500.
Upcoming Earnings Report: The company is set to release its earnings report on January 28, 2026, with an expected EPS of $4.11, reflecting a 12.74% decline year-over-year, and projected revenue of $1.16 billion, down 3.41% from the previous year.
Analyst Estimates and Zacks Rank: M/I Homes currently holds a Zacks Rank of #3 (Hold), with steady EPS estimates over the past month; revisions in analyst estimates are crucial as they correlate with stock price performance.
Valuation and Industry Ranking: M/I Homes has a Forward P/E ratio of 8.21, below the industry average of 12.06, and the Building Products - Home Builders industry ranks in the bottom 12% of all industries according to the Zacks Industry Rank.
Daily Upgrade Report for Validea Kenneth Fisher Strategy - December 10, 2025
Validea's Upgrade: M/I Homes Inc. (MHO) received a rating upgrade from 90% to 100% in Validea's Price/Sales Investor model based on Kenneth Fisher's strategy, indicating strong interest due to its low P/S ratio and solid fundamentals.
Company Overview: M/I Homes, Inc. is a homebuilder specializing in single-family homes and financial services, operating in various regions across the U.S. and catering to a diverse range of buyers.
Kenneth Fisher's Background: Kenneth Fisher, a prominent money manager and author, is known for popularizing the price/sales ratio as a stock evaluation tool and is the founder of Fisher Investments.
Validea's Mission: Validea is an investment research service that analyzes stocks based on the strategies of renowned investors, aiming to provide insights and model portfolios that have historically outperformed the market.
M/I Homes Reports Strong 2025 Earnings Amid Market Challenges
- Performance Highlights: M/I Homes delivered 8,921 homes in 2025 with revenue of $4.4 billion, demonstrating resilience in a challenging market despite a 20% decline in pre-tax income, indicating strong financial health.
- Margin Pressure: The gross margin for 2025 was 23.0%, and 24.4% excluding $59 million in inventory and warranty charges, reflecting a 220 basis point decline from 2024 due to rising incentives and lot costs impacting profitability.
- Sales Trends: New contracts increased by 9% year-over-year in Q4, with a 13% rise in the Southern Region, indicating a gradual recovery in market demand, although the share of first-time buyers decreased, highlighting ongoing challenges.
- Share Buybacks: The company repurchased $50 million in stock during Q4 and $200 million for the year, reflecting management's confidence in future growth while maintaining a strong balance sheet with $689 million in cash.
M/I Homes Q4 Earnings Report Analysis
- Earnings Miss: M/I Homes reported a Q4 GAAP EPS of $2.39, missing expectations by $1.49, indicating pressure on profitability that could affect investor confidence.
- Revenue Growth: Despite a 5% year-over-year decline to $1.15 billion, revenue exceeded market expectations by $40 million, demonstrating the company's resilience in challenging conditions.
- New Contracts Increase: New contracts rose by 9% to 1,921 homes, reflecting a rebound in market demand that may lay the groundwork for future revenue growth.
- Delivery Decline: Homes delivered decreased by 4% to 2,301, highlighting challenges in the production and delivery chain that could impact the company's market share and customer satisfaction.
M/I Homes Reports 2025 Financial Results with Declining Net Income
- Declining Financial Performance: In Q4 2025, M/I Homes reported pre-tax income of $80.6 million and net income of $64.0 million ($2.39 per diluted share), reflecting a significant drop from Q4 2024's pre-tax income of $170.6 million and net income of $133.5 million, indicating challenges in the current market.
- Reduced Deliveries: The company delivered 2,301 homes in Q4 2025, a 4% decrease from 2,402 in Q4 2024, and a total of 8,921 homes for the year, down 1% year-over-year, highlighting sales pressure amid weak new home demand.
- New Contracts Growth: Despite the decline in deliveries, new contracts increased by 9% in Q4 2025 to 1,921, suggesting that the company still possesses some market appeal, potentially setting the stage for future performance recovery.
- Strong Financial Health: As of December 31, 2025, M/I Homes achieved record shareholders' equity of $3.2 billion and cash reserves of $689 million with no borrowings, demonstrating robust financial stability in a challenging market environment.
M/I Homes to Announce Q4 Earnings on January 28
- Earnings Announcement Schedule: M/I Homes is set to release its Q4 earnings on January 28 before market open, with a consensus EPS estimate of $3.88, reflecting a 17.6% year-over-year decline, indicating potential challenges the company faces.
- Revenue Expectations Decline: Analysts forecast that M/I Homes will generate $1.11 billion in revenue for Q4, an 8.3% year-over-year decrease, suggesting sales pressures in the current economic environment.
- Historical Performance: Over the past two years, M/I Homes has beaten EPS estimates 75% of the time and revenue estimates 75% of the time, demonstrating the company's stability in financial forecasting.
- Market Analysis Focus: Despite facing challenges, Seeking Alpha's Quant Rating maintains a focus on M/I Homes, indicating potential optimism in the market regarding its future performance.
M/I Homes (MHO) Declines More Sharply Than the Overall Market: Key Insights for Investors
Stock Performance: M/I Homes (MHO) closed at $133.26, down 1.24%, underperforming the S&P 500's loss of 0.24; however, the stock has risen 8.73% over the past month, outperforming both the Construction sector and the S&P 500.
Upcoming Earnings Report: The company is set to release its earnings report on January 28, 2026, with an expected EPS of $4.11, reflecting a 12.74% decline year-over-year, and projected revenue of $1.16 billion, down 3.41% from the previous year.
Analyst Estimates and Zacks Rank: M/I Homes currently holds a Zacks Rank of #3 (Hold), with steady EPS estimates over the past month; revisions in analyst estimates are crucial as they correlate with stock price performance.
Valuation and Industry Ranking: M/I Homes has a Forward P/E ratio of 8.21, below the industry average of 12.06, and the Building Products - Home Builders industry ranks in the bottom 12% of all industries according to the Zacks Industry Rank.
Daily Upgrade Report for Validea Kenneth Fisher Strategy - December 10, 2025
Validea's Upgrade: M/I Homes Inc. (MHO) received a rating upgrade from 90% to 100% in Validea's Price/Sales Investor model based on Kenneth Fisher's strategy, indicating strong interest due to its low P/S ratio and solid fundamentals.
Company Overview: M/I Homes, Inc. is a homebuilder specializing in single-family homes and financial services, operating in various regions across the U.S. and catering to a diverse range of buyers.
Kenneth Fisher's Background: Kenneth Fisher, a prominent money manager and author, is known for popularizing the price/sales ratio as a stock evaluation tool and is the founder of Fisher Investments.
Validea's Mission: Validea is an investment research service that analyzes stocks based on the strategies of renowned investors, aiming to provide insights and model portfolios that have historically outperformed the market.
