Meritage Homes (MTH) Rises As Market Takes a Dip: Key Facts
In the latest trading session, Meritage Homes (MTH) closed at $110.86, marking a +0.28% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 1.26%. On the other hand, the Dow registered a loss of 0.86%, and the technology-centric Nasdaq decreased by 1.54%.
The homebuilder's stock has dropped by 10.14% in the past month, falling short of the Construction sector's loss of 7.65% and the S&P 500's loss of 3.67%.
Investors will be eagerly watching for the performance of Meritage Homes in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 31, 2023. On that day, Meritage Homes is projected to report earnings of $5.10 per share, which would represent a year-over-year decline of 28.17%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.55 billion, down 1.76% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $19.37 per share and a revenue of $6.06 billion, signifying shifts of -27.56% and -3.29%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.42% lower within the past month. Currently, Meritage Homes is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Meritage Homes has a Forward P/E ratio of 5.71 right now. Its industry sports an average Forward P/E of 7.12, so one might conclude that Meritage Homes is trading at a discount comparatively.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 68, putting it in the top 27% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MTH in the coming trading sessions, be sure to utilize Zacks.com.
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Meritage Homes Corporation (MTH) : Free Stock Analysis Report
