Is Meritage Homes (MTH) Outperforming Other Construction Stocks This Year?
Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Is Meritage Homes (MTH) one of those stocks right now? 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 one of 101 companies in the Construction group. The Construction group currently sits at #8 within the Zacks Sector Rank. 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. MTH is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for MTH's full-year earnings has moved 5.24% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, MTH has returned 78.05% so far this year. At the same time, Construction stocks have gained an average of 37.68%. This means that Meritage Homes is performing better than its sector in terms of year-to-date returns.
Looking more specifically, MTH belongs to the Building Products - Home Builders industry, which includes 19 individual stocks and currently sits at #44 in the Zacks Industry Rank. On average, this group has gained an average of 51.12% so far this year, meaning that MTH is performing better in terms of year-to-date returns.
Investors in the Construction sector will want to keep a close eye on MTH as it attempts to continue its solid performance.
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