Here's Why Meritage Homes (MTH) Fell More Than Broader Market
In the latest trading session, Meritage Homes (MTH) closed at $170.76, marking a -1.97% move from the previous day. This move lagged the S&P 500's daily loss of 0.57%. Elsewhere, the Dow gained 0.07%, while the tech-heavy Nasdaq lost 1.64%.
Shares of the homebuilder witnessed a gain of 17.7% over the previous month, beating the performance of the Construction sector with its gain of 10.72% and the S&P 500's gain of 4%.
The investment community will be closely monitoring the performance of Meritage Homes in its forthcoming earnings report. The company is scheduled to release its earnings on January 31, 2024. In that report, analysts expect Meritage Homes to post earnings of $5.17 per share. This would mark a year-over-year decline of 27.08%. Meanwhile, our latest consensus estimate is calling for revenue of $1.52 billion, down 23.54% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for Meritage Homes. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Meritage Homes presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Meritage Homes has a Forward P/E ratio of 8.95 right now. This signifies a discount in comparison to the average Forward P/E of 9.88 for its industry.
The Building Products - Home Builders industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 56, positioning it in the top 23% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Meritage Homes Corporation (MTH) : Free Stock Analysis Report
