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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 $16.64, moving +1.77% from the previous trading session. This move lagged the S&P 500's daily gain of 2.24%. Meanwhile, the Dow gained 1.55%, and the Nasdaq, a tech-heavy index, added 0.5%.

Heading into today, shares of the homebuilder had lost 3.37% over the past month, outpacing the Construction sector's loss of 3.63% and the S&P 500's loss of 4.46% in that time.

Beazer Homes will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.04, up 28.4% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $487.95 million, down 11.26% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.46 per share and revenue of $2.25 billion, which would represent changes of +34.81% and +5.13%, respectively, from the prior year.

Any recent changes to analyst estimates for Beazer Homes should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Beazer Homes is currently a Zacks Rank #3 (Hold).

Digging into valuation, Beazer Homes currently has a Forward P/E ratio of 2.99. For comparison, its industry has an average Forward P/E of 4.23, which means Beazer Homes is trading at a discount to the group.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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