Here's Why Beazer Homes (BZH) Fell More Than Broader Market
Beazer Homes (BZH) closed at $33.79 in the latest trading session, marking a -1% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.28%. At the same time, the Dow lost 0.06%, and the tech-heavy Nasdaq lost 0.56%.
Heading into today, shares of the homebuilder had gained 29.72% over the past month, outpacing the Construction sector's gain of 15.49% and the S&P 500's gain of 5.24% in that time.
The investment community will be paying close attention to the earnings performance of Beazer Homes in its upcoming release. The company is expected to report EPS of $0.70, down 12.5% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $417.34 million, reflecting a 6.2% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.65 per share and revenue of $2.23 billion, which would represent changes of -9.88% and +0.89%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Beazer Homes. These revisions help to show the ever-changing nature 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Beazer Homes is carrying a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Beazer Homes has a Forward P/E ratio of 7.35 right now. Its industry sports an average Forward P/E of 10.38, so one might conclude that Beazer Homes is trading at a discount comparatively.
The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 83, finds itself in the top 33% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Beazer Homes USA, Inc. (BZH) : Free Stock Analysis Report
