Meritage Homes (MTH) Outpaces Stock Market Gains: What You Should Know
The latest trading session saw Meritage Homes (MTH) ending at $176.50, denoting a +1.43% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 0.22%. Elsewhere, the Dow gained 0.36%, while the tech-heavy Nasdaq added 0.32%.
Heading into today, shares of the homebuilder had gained 0.28% over the past month, outpacing the Construction sector's loss of 0.75% and lagging the S&P 500's gain of 1.61% in that time.
The upcoming earnings release of Meritage Homes will be of great interest to investors. The company's earnings report is expected on January 31, 2024. On that day, Meritage Homes is projected to report earnings of $5.18 per share, which would represent a year-over-year decline of 26.94%. Our most recent consensus estimate is calling for quarterly revenue of $1.52 billion, down 23.54% from the year-ago period.
Investors should also take note of any recent adjustments to analyst estimates for Meritage Homes. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.24% upward. Meritage Homes currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Meritage Homes is currently being traded at a Forward P/E ratio of 8.91. This indicates a discount in contrast to its industry's Forward P/E of 9.8.
The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 15, which puts it in the top 6% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Meritage Homes Corporation (MTH) : Free Stock Analysis Report
