MI’s stock began 2021 on a run that would peak in May for a staggering 75% gain before pulling back to the $53 range two months later.
Since then, MHO has spent (most of) the year bouncing between $55 and $65, capped by a horrible Friday (12/17), which gave shareholders a 4-percent drop in price.
With that said, I still think MI Homes, Inc., is undervalued.
MI Homes, Inc. primarily serves as a builder of single-family homes in Ohio, Indiana, Illinois, Michigan, Minnesota, North Carolina, Florida, and Texas.
The company operates in two segments. A homebuilding arm responsible for the development, marketing, and selling of single-family homes to millennials and luxury buyers alike.
In addition, their Financial Services arm originates and sells mortgages, provides title insurance, appraisals, and closing services to purchasers of their homes.
Even though they’re light on cash, MI’s sales growth and Equity Growth Rate are excellent.
Add that to an A-1 management team, and $55/share price, I can see this stock reaching $180/share in the next 3-years.