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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 $16.53, moving +0.49% from the previous trading session. This change lagged the S&P 500's 1.13% gain on the day. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, added 0.91%.

Heading into today, shares of the homebuilder had gained 1.61% over the past month, outpacing the Construction sector's gain of 1.33% and lagging the S&P 500's gain of 2.65% in that time.

Wall Street will be looking for positivity from Beazer Homes as it approaches its next earnings report date. 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.

BZH's full-year Zacks Consensus Estimates are calling for earnings of $5.46 per share and revenue of $2.25 billion. These results would represent year-over-year changes of +34.81% and +5.13%, respectively.

Investors should also note any recent changes to analyst estimates for Beazer Homes. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Beazer Homes is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Beazer Homes's current valuation metrics, including its Forward P/E ratio of 3.01. This valuation marks a discount compared to its industry's average Forward P/E of 4.29.

The Building Products - Home Builders industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 54, which puts it in the top 22% 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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