Has Meritage Homes (MTH) Outpaced Other Construction Stocks This Year?
For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Meritage Homes (MTH) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Construction peers, we might be able to answer that question.
Meritage Homes is a member of the Construction sector. This group includes 99 individual stocks and currently holds a Zacks Sector Rank of #1. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Meritage Homes is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for MTH's full-year earnings has moved 29.1% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, MTH has moved about 46.2% on a year-to-date basis. In comparison, Construction companies have returned an average of 28.1%. This means that Meritage Homes is performing better than its sector in terms of year-to-date returns.
Another Construction stock, which has outperformed the sector so far this year, is Owens Corning (OC). The stock has returned 59% year-to-date.
In Owens Corning's case, the consensus EPS estimate for the current year increased 30.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Meritage Homes is a member of the Building Products - Home Builders industry, which includes 19 individual companies and currently sits at #4 in the Zacks Industry Rank. On average, stocks in this group have gained 41.9% this year, meaning that MTH is performing better in terms of year-to-date returns.
On the other hand, Owens Corning belongs to the Building Products - Miscellaneous industry. This 27-stock industry is currently ranked #19. The industry has moved +31.4% year to date.
Going forward, investors interested in Construction stocks should continue to pay close attention to Meritage Homes and Owens Corning as they could maintain their solid performance.
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Meritage Homes Corporation (MTH) : Free Stock Analysis Report
Owens Corning Inc (OC) : Free Stock Analysis Report
