Top 5 Extreme Value Stocks To Buy

2. M/I Homes, Inc. (NYSE:MHO)

Number of Hedge Fund Holders: 25

M/I Homes, Inc. (NYSE:MHO) is an Ohio-based builder of single-family homes and provides construction-related services in Illinois, North Carolina, Minnesota, Indiana, Texas, Florida, and Washington, D.C.

According to the database of Insider Monkey which tracks 910 elite hedge funds, 25 hedge funds had investments in M/I Homes, Inc. (NYSE:MHO) stock in the second quarter. The most prominent shareholder of the company was Matthew Lindenbaum’s Basswood Capital after it increased its stake in the company by 9% to 269,494 shares worth $23.497 million.

On October 25, M/I Homes, Inc. (NYSE:MHO) posted its Q3 earnings result in which the GAAP EPS was $4.82, beating the estimates by $0.55. The revenue grew 4% to $1.05 billion.

M/I Homes, Inc. (NYSE:MHO) was mentioned in Miller Value Partners’ first-quarter 2023 investor letter. Here is what it said:

“During the quarter, our largest positive contributor was M/I Homes, Inc. (NYSE:MHO), with share prices up in excess of 30%. Homebuilders in general had been under pressure for much of last year due to marketplace concerns on the potential impact from higher mortgage rates and lower housing affordability. However, as mortgage rates pull back the positive demographics and lack of housing supply over the past 10 years provides a very favorable long-term supply/demand picture for the industry that should shorten the current downturn. M/I Homes is nicely diversified covering multiple home-type categories, with properties in valuable local communities in the Midwest and Southeast (#2 in the Jon Burns Real Estate Consulting Submarket Desirability Index). M/I Homes’ attractive asset base, strong balance sheet and ongoing valuation discount to peers should provide an attractive long-term reward/risk investment opportunity.”