Why Meritage Homes (MTH) Dipped More Than Broader Market Today
The most recent trading session ended with Meritage Homes (MTH) standing at $171.27, reflecting a -1.99% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily loss of 1.47%. On the other hand, the Dow registered a loss of 1.27%, and the technology-centric Nasdaq decreased by 1.5%.
Shares of the homebuilder have appreciated by 24.03% over the course of the past month, outperforming the Construction sector's gain of 13.4% and the S&P 500's gain of 5.77%.
The investment community will be paying close attention to the earnings performance of Meritage Homes in its upcoming release. The company is slated to reveal its earnings on January 31, 2024. It is anticipated that the company will report an EPS of $5.24, marking a 26.09% fall compared to the same quarter of the previous 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.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $19.65 per share and a revenue of $5.99 billion, signifying shifts of -26.51% and -4.45%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Meritage Homes. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Meritage Homes is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Meritage Homes is presently being traded at a Forward P/E ratio of 8.89. For comparison, its industry has an average Forward P/E of 10.19, which means Meritage Homes is trading at a discount to the group.
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 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Meritage Homes Corporation (MTH) : Free Stock Analysis Report
