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Is Meritage Homes (MTH) Stock Outpacing Its Construction Peers This Year?

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Investors focused on the Construction space have likely heard of Meritage Homes (MTH - Free Report) , but is the stock performing well in comparison to the rest of its sector peers? By taking a look at the stock's year-to-date performance in comparison to its Construction peers, we might be able to answer that question.

Meritage Homes is a member of our Construction group, which includes 101 different companies and currently sits at #1 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. MTH is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for MTH's full-year earnings has moved 49.80% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, MTH has moved about 65.29% on a year-to-date basis. Meanwhile, the Construction sector has returned an average of 6.41% on a year-to-date basis. As we can see, Meritage Homes is performing better than its sector in the calendar year.

To break things down more, MTH belongs to the Building Products - Home Builders industry, a group that includes 16 individual companies and currently sits at #5 in the Zacks Industry Rank. This group has gained an average of 27.97% so far this year, so MTH is performing better in this area.

Investors in the Construction sector will want to keep a close eye on MTH as it attempts to continue its solid performance.


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