Why Meritage Homes (MTH) Dipped More Than Broader Market Today
In the latest market close, Meritage Homes (MTH) reached $170.22, with a -0.99% movement compared to the previous day. The stock's change was less than the S&P 500's daily loss of 0.37%. Elsewhere, the Dow lost 0.62%, while the tech-heavy Nasdaq lost 0.19%.
Prior to today's trading, shares of the homebuilder had gained 0.47% over the past month. This has outpaced the Construction sector's loss of 0.65% and lagged the S&P 500's gain of 1.56% in that time.
Market participants will be closely following the financial results of Meritage Homes in its upcoming release. The company plans to announce its earnings on January 31, 2024. The company's upcoming EPS is projected at $5.18, signifying a 26.94% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.52 billion, showing a 23.54% drop compared to the year-ago quarter.
Investors should also note any recent changes to analyst estimates for Meritage Homes. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.24% higher within the past month. Meritage Homes currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Meritage Homes currently has a Forward P/E ratio of 8.81. This valuation marks a discount compared to its industry's average Forward P/E of 9.65.
The Building Products - Home Builders industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 14, placing it within the top 6% of over 250 industries.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Meritage Homes Corporation (MTH) : Free Stock Analysis Report
