Meritage Homes (MTH) Outperforms Broader Market: What You Need to Know
Meritage Homes (MTH) closed the latest trading day at $118.69, indicating a +1.49% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 0.52% for the day. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, added 0.58%.
Shares of the homebuilder have depreciated by 12.72% over the course of the past month, underperforming the Construction sector's loss of 5.54% and the S&P 500's loss of 2.61%.
The upcoming earnings release of Meritage Homes will be of great interest to investors. The company's earnings report is expected on October 31, 2023. The company is expected to report EPS of $5.11, down 28.03% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $1.55 billion, indicating a 1.64% downward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $19.45 per share and a revenue of $6.07 billion, signifying shifts of -27.26% and -3.17%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Meritage Homes. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Meritage Homes is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Meritage Homes is currently exchanging hands at a Forward P/E ratio of 6.01. This indicates a discount in contrast to its industry's Forward P/E of 7.08.
The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 36, this industry ranks in the top 15% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Meritage Homes Corporation (MTH) : Free Stock Analysis Report
