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Beazer Homes (BZH) Gains But Lags Market: What You Should Know

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Beazer Homes (BZH - Free Report) closed the most recent trading day at $17.66, moving +0.57% from the previous trading session. This change lagged the S&P 500's 1.21% gain on the day.

Heading into today, shares of the homebuilder had lost 6.35% over the past month, lagging the Construction sector's loss of 2.93% and the S&P 500's loss of 0.9% in that time.

BZH will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.82, down 3.53% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $581.65 million, down 15.3% from the year-ago period.

BZH's full-year Zacks Consensus Estimates are calling for earnings of $3.26 per share and revenue of $2.13 billion. These results would represent year-over-year changes of +72.49% and -0.06%, respectively.

Investors might also notice recent changes to analyst estimates for BZH. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. BZH is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that BZH has a Forward P/E ratio of 5.39 right now. For comparison, its industry has an average Forward P/E of 6.57, which means BZH is trading at a discount to the group.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 99, putting it in the top 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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