Meritage Homes Corporation (MTH - Free Report) announced the opening of CitySquare, a first-of-its-kind condominium community in Irvine, CA.
The homes at CitySquare will certainly be desirable as the same will offer energy-efficient capabilities. Per California’s latest solar mandate, all new homes are required to include solar energy by 2020. CitySquare will feature all-electric, zero-net energy community.
The community will present spacious, open four-bedroom floorplans in three different floors and ample amenities. Also, the community will be fascinating to homebuyers since it will be convenient for commuters to travel the 55, 405 and 73 freeways, along with the John Wayne Airport.
This seventh-largest public homebuilding company is a leader in building energy-efficient homes. The company has been receiving ENERGY STAR Partner of the Year for Sustained Excellence Award every year since 2013 from the U.S. Environmental Protection Agency for innovative and industry leading energy-saving solutions.
Focus on Innovation Bodes Well
Earlier to this project, the company had partnered with the Environmental Protection Agency, California Energy Commission, Southern California Edison and Electric Power Research Institute to develop such communities.
Meritage Homes, which focuses on cutting-edge innovation and organizational agility, sets the standard for energy-efficient community. In 2018, the company’s total home closing revenues grew 9% year over year. Also, home deliveries improved 11% from the year-ago level to 8,531 homes. Total orders also increased 2% during the year.
Shares of Meritage Homes have gained 8.4% in the past year against its industry’s 7.8% decline. The outperformance can be attributed to an impressive earnings surprise trend. The company’s earnings surpassed the Zacks Consensus Estimate in six of the trailing seven quarters, with the average positive surprise being 19.3%. Notably, its fourth-quarter adjusted earnings increased an impressive 120% year over year. A strong brand presence, and innovation and strategies relating to entry-level and first-move-up communities should drive the stock’s performance in the upcoming quarters as well.
Zacks Rank & Key Picks
Currently, Meritage Homes carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Zacks Construction sector include Apergy Corporation (APY - Free Report) , Quanta Services, Inc. (PWR - Free Report) and AECOM (ACM - Free Report) . While Apergy and Quanta Services sport a Zacks Rank #1 (Strong Buy), AECOM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Apergy, Quanta Services and AECOM’s earnings for the current year are expected to increase 2.8%, 25.3% and 2.6%, respectively.
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