Top residential homebuilders have been outperforming expectations this earnings season, but the market has generally seemed unimpressed with their results. Few of their share prices have moved by more than a couple of percentage points in response to their reports, despite big year-over-year earnings gains and favorable market conditions for the foreseeable future.
So it was with M/I Homes (NYSE: MHO), which reported earnings last week that missed analysts' forecasts. Traders immediately sent the shares down by about 12%, but then, the stock price promptly began to rise again. By the end of the day, it was only down by about 1.8%.
Here's why investors decided to jump back into the homebuilder.