Meritage Homes (MTH) Gains As Market Dips: What You Should Know
Meritage Homes (MTH) closed at $135.08 in the latest trading session, marking a +1.18% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.32%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq lost 0.89%.
Heading into today, shares of the homebuilder had lost 9.45% over the past month, lagging the Construction sector's loss of 2.7% and the S&P 500's loss of 0.12% in that time.
Wall Street will be looking for positivity from Meritage Homes as it approaches its next earnings report date. On that day, Meritage Homes is projected to report earnings of $5.11 per share, which would represent a year-over-year decline of 28.03%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.55 billion, down 1.64% from the year-ago period.
MTH's full-year Zacks Consensus Estimates are calling for earnings of $19.45 per share and revenue of $6.07 billion. These results would represent year-over-year changes of -27.26% and -3.17%, respectively.
Any recent changes to analyst estimates for Meritage Homes should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Meritage Homes is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, Meritage Homes is currently trading at a Forward P/E ratio of 6.86. For comparison, its industry has an average Forward P/E of 8.44, which means Meritage 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.
To follow MTH in the coming trading sessions, be sure to utilize Zacks.com.
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Meritage Homes Corporation (MTH) : Free Stock Analysis Report
