Meritage Homes (MTH) Beats Stock Market Upswing: What Investors Need to Know
Meritage Homes (MTH) ended the recent trading session at $117.59, demonstrating a +1.58% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.81% for the day. At the same time, the Dow added 0.39%, and the tech-heavy Nasdaq gained 1.35%.
Prior to today's trading, shares of the homebuilder had lost 12.73% over the past month. This has lagged the Construction sector's loss of 11.17% and the S&P 500's loss of 6.19% in that time.
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 October 31, 2023. In that report, analysts expect Meritage Homes to post earnings of $5.11 per share. This would mark a year-over-year decline of 28.03%. Alongside, our most recent consensus estimate is anticipating revenue of $1.55 billion, indicating a 1.64% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $19.45 per share and a revenue of $6.07 billion, demonstrating changes of -27.26% and -3.17%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Meritage Homes. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection remained stagnant. Meritage Homes is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Meritage Homes is holding a Forward P/E ratio of 5.95. This represents a discount compared to its industry's average Forward P/E of 6.9.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 24, putting it in the top 10% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Meritage Homes Corporation (MTH) : Free Stock Analysis Report
