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Meritage Homes (MTH) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Meritage Homes (MTH - Free Report) closed at $140.51, marking a +1.75% move from the previous day. This change outpaced the S&P 500's 0.03% gain on the day. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, lost 1.37%.

Prior to today's trading, shares of the homebuilder had gained 2.27% over the past month. This has lagged the Construction sector's gain of 6.36% and the S&P 500's gain of 3.43% in that time.

Meritage Homes will be looking to display strength as it nears its next earnings release, which is expected to be July 27, 2023. The company is expected to report EPS of $3.49, down 48.45% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.31 billion, down 7.15% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.35 per share and revenue of $5.57 billion. These totals would mark changes of -42.6% and -11.22%, respectively, from last year.

Any recent changes to analyst estimates for Meritage Homes should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.54% higher within the past month. Meritage Homes currently has a Zacks Rank of #2 (Buy).

In terms of valuation, Meritage Homes is currently trading at a Forward P/E ratio of 9. Its industry sports an average Forward P/E of 9.98, so we one might conclude that Meritage Homes is trading at a discount comparatively.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 21, putting it in the top 9% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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