Why the Market Dipped But Beazer Homes (BZH) Gained Today
Beazer Homes (BZH) closed the most recent trading day at $33.02, moving +0.67% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 1.47%. Elsewhere, the Dow saw a downswing of 1.27%, while the tech-heavy Nasdaq depreciated by 1.5%.
Prior to today's trading, shares of the homebuilder had gained 22.3% over the past month. This has outpaced the Construction sector's gain of 13.4% and the S&P 500's gain of 5.77% in that time.
Market participants will be closely following the financial results of Beazer Homes in its upcoming release. On that day, Beazer Homes is projected to report earnings of $0.70 per share, which would represent a year-over-year decline of 12.5%. Meanwhile, the latest consensus estimate predicts the revenue to be $417.34 million, indicating a 6.2% decrease compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.65 per share and revenue of $2.23 billion, indicating changes of -9.88% and +0.89%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Beazer Homes. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Beazer Homes is currently a Zacks Rank #4 (Sell).
Investors should also note Beazer Homes's current valuation metrics, including its Forward P/E ratio of 7.06. This valuation marks a discount compared to its industry's average Forward P/E of 10.19.
The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 66, this industry ranks in the top 27% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Beazer Homes USA, Inc. (BZH) : Free Stock Analysis Report
