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Meritage Homes (MTH) Beats Stock Market Upswing: What Investors Need to Know

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Meritage Homes (MTH - Free Report) closed at $175.46 in the latest trading session, marking a +1.64% move from the prior day. This move outpaced the S&P 500's daily gain of 0.11%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, lost 0.12%.

The homebuilder's stock has climbed by 11.13% in the past month, exceeding the Construction sector's gain of 7.71% and the S&P 500's gain of 3.55%.

The upcoming earnings release of Meritage Homes will be of great interest to investors. The company is predicted to post an EPS of $3.55, indicating a 0.28% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.28 billion, showing a 0.2% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $17.72 per share and a revenue of $6.09 billion, signifying shifts of -11.09% and -0.31%, respectively, from the last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Meritage Homes. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Meritage Homes is currently sporting a Zacks Rank of #4 (Sell).

With respect to valuation, Meritage Homes is currently being traded at a Forward P/E ratio of 9.74. This denotes a discount relative to the industry's average Forward P/E of 10.03.

The Building Products - Home Builders industry is part of the Construction sector. With its current Zacks Industry Rank of 41, this industry ranks in the top 17% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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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