Meritage Homes (MTH) Stock Slides as Market Rises: Facts to Know Before You Trade
In the latest market close, Meritage Homes (MTH) reached $171.13, with a -1.1% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 0.45%.
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. The company's earnings per share (EPS) are projected to be $5.24, reflecting a 26.09% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.54 billion, indicating a 22.56% decrease compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $19.65 per share and a revenue of $5.99 billion, indicating changes of -26.51% and -4.45%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Meritage Homes. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Meritage Homes boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Meritage Homes is currently exchanging hands at a Forward P/E ratio of 8.8. For comparison, its industry has an average Forward P/E of 10.4, which means Meritage Homes is trading at a discount to the group.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 54, placing it within the top 22% of over 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Meritage Homes Corporation (MTH) : Free Stock Analysis Report
