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Meritage Homes (MTH) Stock Moves -0.1%: What You Should Know

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In the latest trading session, Meritage Homes (MTH - Free Report) closed at $86.19, marking a -0.1% move from the previous day. This change was narrower than the S&P 500's 0.13% loss on the day. At the same time, the Dow lost 0.23%, and the tech-heavy Nasdaq gained 0.54%.

Heading into today, shares of the homebuilder had lost 4.9% over the past month, lagging the Construction sector's gain of 6.55% and the S&P 500's gain of 3.5% in that time.

Investors will be hoping for strength from MTH as it approaches its next earnings release. On that day, MTH is projected to report earnings of $3.36 per share, which would represent year-over-year growth of 26.79%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.30 billion, up 14.37% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.40 per share and revenue of $4.38 billion. These totals would mark changes of +61.99% and +20.29%, respectively, from last year.

Any recent changes to analyst estimates for MTH should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. MTH currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, MTH is holding a Forward P/E ratio of 8.3. This valuation marks a discount compared to its industry's average Forward P/E of 9.23.

We can also see that MTH currently has a PEG ratio of 0.32. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Building Products - Home Builders stocks are, on average, holding a PEG ratio of 0.66 based on yesterday's closing prices.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 50, putting it in the top 20% 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.

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