Beazer Homes (BZH) Stock Sinks As Market Gains: What You Should Know
Beazer Homes (BZH) closed the most recent trading day at $24.97, moving -0.32% from the previous trading session. This change lagged the S&P 500's 0.4% gain on the day. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, added 0.45%.
Heading into today, shares of the homebuilder had lost 9.01% over the past month, lagging the Construction sector's loss of 4.84% and the S&P 500's loss of 1.38% in that time.
Investors will be hoping for strength from Beazer Homes as it approaches its next earnings release. On that day, Beazer Homes is projected to report earnings of $1.39 per share, which would represent a year-over-year decline of 50.71%. Meanwhile, our latest consensus estimate is calling for revenue of $627.94 million, down 24.13% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.75 per share and revenue of $2.19 billion, which would represent changes of -33.75% and -5.51%, respectively, from the prior year.
Any recent changes to analyst estimates for Beazer Homes should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Beazer Homes currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Beazer Homes is holding a Forward P/E ratio of 5.28. For comparison, its industry has an average Forward P/E of 8.24, which means Beazer Homes is trading at a discount to the group.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 5, putting it in the top 2% of all 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Beazer Homes USA, Inc. (BZH) : Free Stock Analysis Report
