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Here's How Much a $1000 Investment in Meritage Homes Made 10 Years Ago Would Be Worth Today
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Meritage Homes (MTH - Free Report) ten years ago? It may not have been easy to hold on to MTH for all that time, but if you did, how much would your investment be worth today?
Meritage Homes' Business In-Depth
With that in mind, let's take a look at Meritage Homes' main business drivers.
Based in Scottsdale, AZ, Meritage Homes Corporation is one of the leading designers and builders of single-family homes. The company primarily engages in building and selling single-family homes for entry-level, first-time, move-up, luxury and active adult buyers in historically high-growth regions of the United States.
On Dec 31, 1996, it acquired the homebuilding operations of its predecessor company through a merger. Since then, it have engaged in homebuilding and related activities and ceased to operate as a real estate investment trust. Meritage Homes operates as a holding company and has no independent assets or operations.
The company operates through two principal business segments: Homebuilding (which accounted for 99.6% of total 2022 revenues) and Financial Services (0.4%).
The Homebuilding segment engages in acquiring and developing land, constructing homes, marketing and selling these constructed homes, and providing warranty and customer services. The company has homebuilding operations in three regions, namely West, Central and East, across nine states - Arizona, California, Colorado, Texas, Florida, Georgia, North Carolina, South Carolina, and Tennessee.
Meritage Homes also operates Carefree Title Agency, Inc., a wholly-owned title company whose core business includes title insurance and closing/settlement services. Notably, the company’s Financial Services segment includes revenues and expenses from Carefree Title.
At the end of first-quarter 2023, the company actively sold homes in 278 communities.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Meritage Homes, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in July 2013 would be worth $3,200.57, or a 220.06% gain, as of July 17, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 168.15% and gold's return of 47.12% over the same time frame.
Looking ahead, analysts are expecting more upside for MTH.
Shares of Meritage Homes have outperformed its industry in the year to date. The company is benefiting from the strategy of targeting entry-level and first-move-up buyers and is expected to boost performance over the long haul. This strategy will likely produce higher volume in the future for the company, especially from digital communities, and help it gain market share across the region served. It is also benefiting from its focus on increasing gross margin and maximizing profits on every sale. Also, its ample liquidity and a healthy balance sheet bode well. Earnings estimates for 2023 have been trending north in the past 30 days, depicting analysts’ optimism over the stock’s growth potential. However, volatile mortgage rates, inflationary pressure and macro economic uncertainties are headwinds.
Over the past four weeks, shares have rallied 11.91%, and there have been 2 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in Meritage Homes Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Meritage Homes (MTH - Free Report) ten years ago? It may not have been easy to hold on to MTH for all that time, but if you did, how much would your investment be worth today?
Meritage Homes' Business In-Depth
With that in mind, let's take a look at Meritage Homes' main business drivers.
Based in Scottsdale, AZ, Meritage Homes Corporation is one of the leading designers and builders of single-family homes. The company primarily engages in building and selling single-family homes for entry-level, first-time, move-up, luxury and active adult buyers in historically high-growth regions of the United States.
On Dec 31, 1996, it acquired the homebuilding operations of its predecessor company through a merger. Since then, it have engaged in homebuilding and related activities and ceased to operate as a real estate investment trust. Meritage Homes operates as a holding company and has no independent assets or operations.
The company operates through two principal business segments: Homebuilding (which accounted for 99.6% of total 2022 revenues) and Financial Services (0.4%).
The Homebuilding segment engages in acquiring and developing land, constructing homes, marketing and selling these constructed homes, and providing warranty and customer services. The company has homebuilding operations in three regions, namely West, Central and East, across nine states - Arizona, California, Colorado, Texas, Florida, Georgia, North Carolina, South Carolina, and Tennessee.
Meritage Homes also operates Carefree Title Agency, Inc., a wholly-owned title company whose core business includes title insurance and closing/settlement services. Notably, the company’s Financial Services segment includes revenues and expenses from Carefree Title.
At the end of first-quarter 2023, the company actively sold homes in 278 communities.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Meritage Homes, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in July 2013 would be worth $3,200.57, or a 220.06% gain, as of July 17, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 168.15% and gold's return of 47.12% over the same time frame.
Looking ahead, analysts are expecting more upside for MTH.
Shares of Meritage Homes have outperformed its industry in the year to date. The company is benefiting from the strategy of targeting entry-level and first-move-up buyers and is expected to boost performance over the long haul. This strategy will likely produce higher volume in the future for the company, especially from digital communities, and help it gain market share across the region served. It is also benefiting from its focus on increasing gross margin and maximizing profits on every sale. Also, its ample liquidity and a healthy balance sheet bode well. Earnings estimates for 2023 have been trending north in the past 30 days, depicting analysts’ optimism over the stock’s growth potential. However, volatile mortgage rates, inflationary pressure and macro economic uncertainties are headwinds.
Over the past four weeks, shares have rallied 11.91%, and there have been 2 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.