Meritage Homes (MTH) Outpaces Stock Market Gains: What You Should Know
Meritage Homes (MTH) closed the most recent trading day at $176.57, moving +0.58% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.14%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 0.16%.
The the stock of homebuilder has risen by 26.14% in the past month, leading the Construction sector's gain of 14.08% and the S&P 500's gain of 4.89%.
Market participants will be closely following the financial results of Meritage Homes in its upcoming release. The company plans to announce its earnings on January 31, 2024. The company's earnings per share (EPS) are projected to be $5.17, reflecting a 27.08% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.52 billion, down 23.54% from the year-ago period.
MTH's full-year Zacks Consensus Estimates are calling for earnings of $19.67 per share and revenue of $5.98 billion. These results would represent year-over-year changes of -26.44% and -4.54%, 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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Meritage Homes boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Meritage Homes is currently being traded at a Forward P/E ratio of 8.93. This expresses a discount compared to the average Forward P/E of 10.31 of its industry.
The Building Products - Home Builders industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 69, finds itself in the top 28% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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
