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If You Invested $1000 in Meritage Homes 10 Years Ago, This Is How Much You'd Have Now
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as 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 2020 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.
As of March 2021, the company actively sold homes in 203 communities.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Meritage Homes a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in August 2011 would be worth $6,519.33, or a gain of 551.93%, as of August 13, 2021, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 278.42% and the price of gold went up -3.49% over the same time frame.
Looking ahead, analysts are expecting more upside for MTH.
Meritage Homes reported second-quarter 2021 results, wherein earnings and revenues not only surpassed the Zacks Consensus Estimate but also improved 83.2% and 23.7%, respectively, year over year. Higher home sales gross margin (up 590 basis points) and raised 2021 view are encouraging. Its successful execution of strategic initiatives to boost profitability and focus on entry-level LiVE.NOW homes bode well. Its strategy of targeting entry-level buyers is gaining traction and will continue to boost its performance over the long haul. Meanwhile, improving housing market prospects backed by low mortgage rates and more demand for single family homes in low density areas are likely to aid Meritage Homes in the upcoming quarters. Shares of Meritage Homes have outperformed the industry year to date. Yet, rising land, labor and raw material costs are concerns
The stock has jumped 26.02% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 9 higher, for fiscal 2021; the consensus estimate has moved up as well.
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If You Invested $1000 in Meritage Homes 10 Years Ago, This Is How Much You'd Have Now
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as 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 2020 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.
As of March 2021, the company actively sold homes in 203 communities.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Meritage Homes a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in August 2011 would be worth $6,519.33, or a gain of 551.93%, as of August 13, 2021, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 278.42% and the price of gold went up -3.49% over the same time frame.
Looking ahead, analysts are expecting more upside for MTH.
Meritage Homes reported second-quarter 2021 results, wherein earnings and revenues not only surpassed the Zacks Consensus Estimate but also improved 83.2% and 23.7%, respectively, year over year. Higher home sales gross margin (up 590 basis points) and raised 2021 view are encouraging. Its successful execution of strategic initiatives to boost profitability and focus on entry-level LiVE.NOW homes bode well. Its strategy of targeting entry-level buyers is gaining traction and will continue to boost its performance over the long haul. Meanwhile, improving housing market prospects backed by low mortgage rates and more demand for single family homes in low density areas are likely to aid Meritage Homes in the upcoming quarters. Shares of Meritage Homes have outperformed the industry year to date. Yet, rising land, labor and raw material costs are concerns
The stock has jumped 26.02% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 9 higher, for fiscal 2021; the consensus estimate has moved up as well.