Group 1 - The homebuilding market is experiencing renewed interest due to the potential return to low interest rates, which could positively impact housing demand [1] - Crude Value Insights focuses on cash flow and companies that generate it, highlighting value and growth prospects in the oil and natural gas sector [1] Group 2 - Subscribers to Crude Value Insights gain access to a 50+ stock model account and in-depth cash flow analyses of exploration and production (E&P) firms [2] - The service includes live chat discussions about the oil and gas sector, enhancing community engagement and information sharing [2]

Company Performance - Meritage Homes (MTH) shares have increased by 4.3% over the past month, reaching a new 52-week high of $211.01 [1] - Year-to-date, Meritage has gained 16.3%, compared to 21.2% for the Zacks Construction sector and 29.4% for the Zacks Building Products - Home Builders industry [1] Earnings and Revenue - Meritage has consistently exceeded earnings expectations, reporting EPS of $6.31 against a consensus estimate of $5.17 in its last earnings report [2] - For the current fiscal year, Meritage is projected to achieve earnings of $21.14 per share on revenues of $6.29 billion, reflecting a 6.07% increase in EPS and a 2.93% increase in revenues [3] - The next fiscal year forecasts earnings of $22.09 per share on $6.72 billion in revenues, indicating year-over-year changes of 4.48% and 6.77%, respectively [3] Valuation Metrics - Meritage has a Value Score of B, with Growth and Momentum Scores of D and B, respectively, resulting in a VGM Score of B [6] - The stock trades at 9.6X current fiscal year EPS estimates, below the peer industry average of 10.3X, and at 9.7X trailing cash flow compared to an average of 11X for peers [6] Zacks Rank - Meritage holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [7] - The stock aligns with the recommendation for investors to select stocks with Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, suggesting potential for further gains [7] Industry Comparison - M/I Homes, Inc. (MHO), a peer in the industry, has a Zacks Rank of 1 (Strong Buy) and is expected to post earnings of $19.76 per share on revenues of $4.42 billion for the current fiscal year [8][9] - MHO shares have increased by 8.2% over the past month, trading at a forward P/E of 8.46X and a P/CF of 9.65X [10] - The Building Products - Home Builders industry is performing well, ranking in the top 17% of all industries, indicating favorable conditions for both MTH and MHO [10]

Core Viewpoint - Meritage Homes Corporation, the fifth largest public homebuilder in the U.S., is set to release its third quarter 2024 results on October 29, 2024, with a conference call scheduled for October 30, 2024 [1]. Company Overview - Meritage Homes is recognized as the fifth-largest public homebuilder in the United States based on homes closed in 2023 [3]. - The company specializes in energy-efficient and affordable entry-level and first move-up homes, operating in multiple states including Arizona, California, Colorado, Utah, Texas, Florida, Georgia, North Carolina, South Carolina, and Tennessee [3]. - Over its 38-year history, Meritage Homes has delivered more than 185,000 homes and is known for its distinctive style, quality construction, and award-winning customer experience [4]. Industry Leadership - Meritage Homes is an industry leader in energy-efficient homebuilding, having received the U.S. Environmental Protection Agency's ENERGY STAR® Partner of the Year for Sustained Excellence Award eleven times, along with other notable awards [4].

Company Overview - Meritage Homes is the fifth-largest public homebuilder in the United States based on homes closed in 2023, offering energy-efficient and affordable entry-level and first move-up homes [4] - The company has delivered over 185,000 homes in its 38-year history and is recognized for its distinctive style, quality construction, and award-winning customer experience [5] - Meritage Homes is an industry leader in energy-efficient homebuilding, having received multiple awards from the U.S. Environmental Protection Agency, including the ENERGY STAR® Partner of the Year for Sustained Excellence Award [5] Community Engagement - Meritage Homes, in partnership with Operation Homefront, is donating mortgage-free energy-efficient homes to veterans, with two families selected to receive homes in Texas and North Carolina [1][2] - The initiative aims to support veterans in establishing strong foundations and thriving in their communities, highlighting the company's commitment to social responsibility [2][3] - Each family will enter Operation Homefront's Permanent Homes for Veterans program, which provides support for homeownership and financial success [3] Operation Homefront - Operation Homefront is a national nonprofit organization focused on building strong, stable, and secure military families, ensuring they thrive in their communities [7] - The organization allocates 83 percent of its expenditures directly to programs supporting military families, providing critical financial assistance, housing, and family support services [7] - The partnership with Meritage Homes enhances Operation Homefront's mission by providing veterans with the opportunity to pursue dreams that seemed beyond their reach [3]

Core Viewpoint - Meritage Homes Corporation (MTH) has experienced a stock rally of 8.8% over the past month, outperforming both the Zacks Building Products - Home Builders industry and the S&P 500 Index, indicating strong market performance and investor interest [1][2]. Group 1: Company Performance - The company benefits from resilient housing demand and its strategy of delivering quick-turn, affordable move-in-ready homes, which aligns with current market trends [2][4]. - MTH stock is trading above its 50-day and 200-day moving averages, indicating positive technical momentum [3]. - The company achieved an average of 4.5 net sales per month in Q2 2024, exceeding its target of 4 net sales per month, showcasing strong sales performance [8]. Group 2: Strategic Advantages - Meritage Homes employs a dynamic strategy focused on nearly complete homes before sale, akin to a just-in-time inventory model, which effectively meets consumer demand for immediate occupancy [4][7]. - The 60-day closing guarantee is a key highlight of this strategy, appealing to buyers in a fast-paced market [5]. - By targeting entry-level and first-move-up homebuyers, the company positions itself to cater to the largest segment of homebuyer demand, enhancing its market appeal [6]. Group 3: Market Context - The U.S. housing market shows signs of strength, with new single-family home sales reaching a seasonally adjusted annual rate of 739,000 units in July 2024, marking a 10.6% increase [10]. - Existing home sales also exceeded expectations in July, reversing a four-month decline, indicating a potential market rebound [11]. Group 4: Valuation and Estimates - MTH stock has a forward 12-month price-to-earnings ratio of 9.13X, below the industry average of 11.53X, suggesting an attractive valuation for investors [12]. - Analysts have revised earnings estimates upward for MTH, with current and next year estimates at $21.09 and $21.98, reflecting year-over-year growth rates of 5.8% and 4.2% respectively [14].

Core Insights - Meritage Homes published its 2023 ESG Report, highlighting its commitment to sustainability and social initiatives as a key aspect of its operations [1][3]. Environmental Initiatives - Delivered 13,308 ENERGY STAR® certified homes [4] - Reported an average HERS Index energy efficiency score of 52 [4] - Recognized as an eleven-time recipient of the U.S. Environmental Protection Agency's ENERGY STAR® Partner of the Year [4] Social Initiatives - Achieved Great Place to Work® Certified status for the first time [4] - Launched inaugural employee resource groups [4] - Received the Avid Cup – Production award for the third consecutive year, recognizing high customer satisfaction [4] - Earned the Hearthstone BUILDER Humanitarian Award for philanthropic efforts [4] Company Overview - Meritage Homes is the fifth-largest public homebuilder in the U.S., focusing on energy-efficient and affordable homes [6] - The company has delivered over 185,000 homes in its 38-year history and is recognized for quality construction and customer experience [7]

Core Viewpoint - Meritage Homes reported strong second-quarter 2024 results, with earnings and revenues exceeding expectations and showing year-over-year growth [2][4]. Financial Performance - Earnings per share (EPS) reached $6.31, surpassing the Zacks Consensus Estimate by 22.1% and increasing 26% from $5.02 in the previous year [5]. - Total revenues amounted to $1.7 billion, reflecting an 8.3% increase from $1.57 billion in the same quarter last year [5]. - Homebuilding revenues were $1.69 billion, up 7.6% year-over-year, exceeding the consensus estimate by 7.5% [6]. Operational Highlights - The company closed 4,118 homes, an 18% increase from 3,490 units in the prior year [7]. - Total home orders rose 14% year-over-year to 3,799 homes, with a dollar value increase of 7% to $1.57 billion [8]. - The backlog at quarter-end totaled 2,714 units, down 28% year-over-year, with a backlog value decrease of 34% to $1.11 billion [9]. Strategic Initiatives - Meritage invested $631 million in land acquisition and development, controlling over 71,000 lots compared to about 60,000 a year ago [3][11]. - The company achieved a backlog conversion rate of 136% and a return on equity of 18.3% during the quarter [4]. Outlook and Guidance - The company raised its 2024 outlook, now expecting 14,750-15,500 home closings and revenues between $6.1 billion and $6.3 billion [14]. - For Q3, Meritage anticipates 3,650-3,850 home closings, generating revenues of $1.5 billion to $1.6 billion, with EPS expected between $4.60 and $5.05 [16]. Industry Context - Meritage Homes is part of the Zacks Building Products - Home Builders industry, which has seen competitors like D.R. Horton report a revenue increase of 2.5% year-over-year [21].

Group 1 - Meritage Homes (MTH) is identified as a stock with a buy rank and strong income characteristics for investors [1] - The Zacks Consensus Estimate for Meritage Homes' current year earnings has increased by 5.1% over the last 60 days [1] - Meritage Homes has a Zacks Rank of 1 (Strong Buy) and offers a dividend yield of 1.7%, which is significantly higher than the industry average of 0.0% [1]

Company Initiatives - Meritage Homes launched the Meritage Cares Assistance Fund to provide tax-advantaged financial assistance to eligible employees facing financial hardships due to military deployment, serious illness, injury, or natural disasters [1] - The company established three employee resource groups in late 2023 to promote belonging and community among employees [1] Company Performance and Recognition - Meritage Homes is the fifth-largest public homebuilder in the U.S. based on homes closed in 2023, offering energy-efficient and affordable homes across multiple states [2] - The company received the Great Place to Work® Certification™ for the second consecutive year, with 94% of employees affirming it as a great workplace, compared to 57% at a typical U.S. company [4][5] - Meritage has delivered over 185,000 homes in its 38-year history and is recognized for its quality construction and customer experience, receiving multiple awards from the U.S. Environmental Protection Agency [5]

Company Initiatives - Meritage Homes launched the Meritage Cares Assistance Fund, providing tax-advantaged financial assistance to eligible employees facing financial hardships due to military deployment, serious illness, injury, or natural disasters [1] - The company established three employee resource groups in late 2023 to promote belonging and community among employees [1] Company Overview - Meritage Homes is the fifth-largest public homebuilder in the U.S. based on homes closed in 2023, offering energy-efficient and affordable entry-level and first move-up homes across multiple states including Arizona, California, and Texas [2] - The company has delivered over 185,000 homes in its 38-year history and is recognized for its quality construction and customer experience [5] Workplace Culture - Meritage Homes received the Great Place to Work® Certification™ for the second consecutive year, with 94% of participating employees affirming it as a great workplace, compared to 57% at a typical U.S.-based company [4][5] - The certification is based on the 2024 Great Place To Work Trust Index® Survey, which included over 1.3 million workers worldwide [4]