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Meritage Homes (MTH) Stock Moves -0.22%: What You Should Know

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Meritage Homes (MTH - Free Report) closed the most recent trading day at $129.09, moving -0.22% from the previous trading session. This change traded in line with S&P 500. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq lost 0.23%.

Heading into today, shares of the homebuilder had lost 3.19% over the past month, lagging the Construction sector's loss of 2.61% and the S&P 500's gain of 2.08% in that time.

Investors will be hoping for strength from Meritage Homes as it approaches its next earnings release. The company is expected to report EPS of $5.11, down 28.03% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.55 billion, down 1.64% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $19.45 per share and revenue of $6.07 billion, which would represent changes of -27.26% and -3.17%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Meritage 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Meritage Homes currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Meritage Homes is currently trading at a Forward P/E ratio of 6.65. This valuation marks a discount compared to its industry's average Forward P/E of 8.53.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 4, putting it in the top 2% 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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