Meritage Homes (MTH) Dips More Than Broader Market: What You Should Know
Meritage Homes (MTH) closed the most recent trading day at $113.05, moving -0.54% from the previous trading session. This move lagged the S&P 500's daily loss of 0.5%. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq lost 1.23%.
The homebuilder's shares have seen a decrease of 14.51% over the last month, not keeping up with the Construction sector's loss of 4.92% and the S&P 500's loss of 2.4%.
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 October 31, 2023. The company's earnings per share (EPS) are projected to be $5.09, reflecting a 28.31% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.55 billion, down 1.76% from the year-ago period.
MTH's full-year Zacks Consensus Estimates are calling for earnings of $19.37 per share and revenue of $6.06 billion. These results would represent year-over-year changes of -27.56% and -3.29%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Meritage Homes. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 past month, the Zacks Consensus EPS estimate has shifted 0.39% downward. Meritage Homes presently features a Zacks Rank of #4 (Sell).
With respect to valuation, Meritage Homes is currently being traded at a Forward P/E ratio of 5.87. Its industry sports an average Forward P/E of 7.18, so one might conclude that Meritage Homes is trading at a discount comparatively.
The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 56, this industry ranks in the top 23% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Meritage Homes Corporation (MTH) : Free Stock Analysis Report
