Why M.D.C. Holdings, Inc. (MDC) Outpaced the Stock Market Today
In the latest trading session, M.D.C. Holdings, Inc. (MDC) closed at $56.01, marking a +0.74% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.14%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 0.16%.
The company's shares have seen an increase of 27.06% over the last month, surpassing the Construction sector's gain of 14.08% and the S&P 500's gain of 4.89%.
Investors will be eagerly watching for the performance of M.D.C. Holdings, Inc. in its upcoming earnings disclosure. In that report, analysts expect M.D.C. Holdings, Inc. to post earnings of $1.44 per share. This would mark year-over-year growth of 33.33%. In the meantime, our current consensus estimate forecasts the revenue to be $1.29 billion, indicating a 14.88% decline compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.18 per share and revenue of $4.59 billion. These totals would mark changes of -32.46% and -19.73%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for M.D.C. Holdings, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.22% higher. M.D.C. Holdings, Inc. is currently a Zacks Rank #3 (Hold).
In terms of valuation, M.D.C. Holdings, Inc. is presently being traded at a Forward P/E ratio of 10.74. For comparison, its industry has an average Forward P/E of 10.31, which means M.D.C. Holdings, Inc. is trading at a premium to the group.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 69, placing it within the top 28% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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M.D.C. Holdings, Inc. (MDC) : Free Stock Analysis Report
