Investors focused on the Construction space have likely heard of Meritage (MTH), but is the stock performing well in comparison to the rest of its sector peers? One simple way to answer this question is to take a look at the year-to-date performance of MTH and the rest of the Construction group's stocks.
Meritage is a member of our Construction group, which includes 101 different companies and currently sits at #1 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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).
Within the past quarter, the Zacks Consensus Estimate for MTH's full-year earnings has moved 5.44% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, MTH has gained about 96% so far this year. Meanwhile, the Construction sector has returned an average of 39.32% on a year-to-date basis. This means that Meritage is performing better than its sector in terms of year-to-date returns.
Breaking things down more, MTH is a member of the Building Products - Home Builders industry, which includes 19 individual companies and currently sits at #9 in the Zacks Industry Rank. On average, this group has gained an average of 50.46% so far this year, meaning that MTH is performing better in terms of year-to-date returns.
Going forward, investors interested in Construction stocks should continue to pay close attention to MTH as it looks to continue its solid performance.
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