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

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In the latest trading session, Beazer Homes (BZH - Free Report) closed at $16, marking a +0.63% move from the previous day. This change lagged the S&P 500's 0.71% gain on the day. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.14%.

Heading into today, shares of the homebuilder had lost 3.23% over the past month, lagging the Construction sector's loss of 1.22% and the S&P 500's gain of 3.76% in that time.

Investors will be hoping for strength from Beazer Homes as it approaches its next earnings release. On that day, Beazer Homes is projected to report earnings of $1.04 per share, which would represent year-over-year growth of 28.4%. Our most recent consensus estimate is calling for quarterly revenue 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.

Investors might also notice recent changes to analyst estimates for Beazer Homes. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 currently has a Zacks Rank of #3 (Hold).

Investors should also note Beazer Homes's current valuation metrics, including its Forward P/E ratio of 2.91. For comparison, its industry has an average Forward P/E of 4.11, 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 58, which puts it in the top 23% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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