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Meritage Homes (MTH) Dips More Than Broader Markets: What You Should Know

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Meritage Homes (MTH - Free Report) closed at $122.72 in the latest trading session, marking a -0.25% move from the prior day. This change lagged the S&P 500's 0.23% loss on the day. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq lost 0.09%.

Heading into today, shares of the homebuilder had lost 9.09% over the past month, lagging the Construction sector's loss of 4.72% and the S&P 500's loss of 1.43% in that time.

Wall Street will be looking for positivity from Meritage Homes as it approaches its next earnings report date. This is expected to be October 31, 2023. The company is expected to report EPS of $5.11, down 28.03% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.55 billion, down 1.64% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $19.45 per share and revenue of $6.07 billion. These totals would mark changes of -27.26% and -3.17%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Meritage Homes. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Meritage Homes is currently a Zacks Rank #1 (Strong Buy).

Investors should also note Meritage Homes's current valuation metrics, including its Forward P/E ratio of 6.33. This valuation marks a discount compared to its industry's average Forward P/E of 8.22.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 5, putting it in the top 2% 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.

Be sure to follow all of these stock-moving metrics, and many more, on

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