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Beazer Homes (BZH) Gains As Market Dips: What You Should Know

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Beazer Homes (BZH - Free Report) closed at $22.84 in the latest trading session, marking a +0.75% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.06%. At the same time, the Dow added 0.59%, and the tech-heavy Nasdaq lost 0.3%.

Coming into today, shares of the homebuilder had gained 2.12% in the past month. In that same time, the Construction sector gained 2.49%, while the S&P 500 gained 5.76%.

Wall Street will be looking for positivity from Beazer Homes as it approaches its next earnings report date. On that day, Beazer Homes is projected to report earnings of $0.63 per share, which would represent year-over-year growth of 57.5%. Meanwhile, our latest consensus estimate is calling for revenue of $452.7 million, up 5.64% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.01 per share and revenue of $2.43 billion. These totals would mark changes of +23.7% and +13.61%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Beazer Homes. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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, 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. Beazer Homes is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note Beazer Homes's current valuation metrics, including its Forward P/E ratio of 4.53. Its industry sports an average Forward P/E of 5.84, so we one might conclude that Beazer 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 116, putting it in the top 46% 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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