Company Overview - Meritage Homes Corporation is a leading designer and builder of single-family homes, focusing on entry-level, first-time, move-up, luxury, and active adult buyers in high-growth regions of the United States [9]. Investment Insights - Meritage Homes (MTH) has a Momentum Style Score of B, with shares increasing by 18.7% over the past four weeks, indicating strong momentum [10]. - MTH holds a solid Zacks Rank and top-tier Momentum and VGM Style Scores, making it a candidate for investors' short lists [11]. - The Zacks Consensus Estimate for MTH's fiscal 2024 earnings has risen by $0.31 to $20.27 per share, with two analysts revising their earnings estimates upwards in the last 60 days [22]. Zacks Style Scores - The Zacks Style Scores categorize stocks into four types: Value, Growth, Momentum, and VGM, which help investors identify attractive investment opportunities based on different characteristics [14][15][16][17]. - Stocks rated A or B in the Style Scores, combined with a Zacks Rank of 1 or 2, are considered to have the highest likelihood of success [20].

Core Insights - Meritage Homes reported earnings of $5.06 per share for the most recent quarter, exceeding the expected $3.54 per share, resulting in a surprise of 42.94% [1] - The company has consistently surpassed earnings estimates, averaging a 23.40% beat over the last two quarters [8] Earnings Performance - The previous quarter's earnings were $5.38 per share against an estimate of $5.18, leading to a surprise of 3.86% [1] - Meritage has a positive Earnings ESP of +0.64%, indicating analysts' bullish sentiment regarding its near-term earnings potential [2][7] Future Outlook - The next earnings report for Meritage is anticipated on July 24, 2024, with expectations of another potential earnings beat [2] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) have historically produced positive surprises nearly 70% of the time [4] Industry Context - Meritage operates within the Zacks Building Products - Home Builders industry, positioning it as a strong candidate for investors looking for stocks that consistently beat earnings estimates [3]

Core Viewpoint - The homebuilding industry is currently facing challenges such as high mortgage rates and rising costs, yet Meritage Homes Corporation (MTH) is positioned to benefit from improved cycle times and a strategic focus on entry-level and first-move-up homes, which is expected to drive higher volume in the future [1][14]. Financial Performance - In the first quarter of 2024, Meritage Homes reported a year-over-year increase in earnings by 42.9% and total closing revenues by 14.5%, attributed to higher deliveries and an adjusted gross margin improvement of 340 basis points [2]. - Home closings rose by 21% year over year, with 3,507 homes delivered, reflecting the effectiveness of the company's spec-building strategy [6]. Strategic Initiatives - The company employs a solid spec strategy, focusing on building homes without prior buyers, which enhances construction efficiency and reduces wait times for buyers, thereby stimulating market demand [5]. - Meritage Homes has aggressively invested in land acquisition and development, spending $430.4 million in the first quarter of 2024, a 39% increase from the previous year, and currently controls 66,400 lots compared to 60,900 lots a year ago [7]. Market Focus - The company is concentrating on the growing demand for entry-level homes, with 91% of sales orders in the first quarter coming from entry-level buyers, up from 87% a year ago [10]. - Meritage Homes has reduced the average sales price by 4% year over year to cater to millennials and baby boomers seeking affordable housing options [11]. Valuation and Estimates - The earnings estimates for 2024 indicate a growth rate of 1.7% year-over-year, with earnings per share revised to $20.27 from $19.99 over the past 60 days, reflecting positive analyst sentiment [12]. - The stock is trading at a forward price-to-earnings ratio of 7.3X, below the industry average of 9.1X, suggesting an attractive valuation for investors [13]. Conclusion - The strategic focus on entry-level and first-move-up homes is expected to enhance Meritage Homes' market share and volume in the future, particularly through digital communities [14].

Core Insights - Meritage Homes has received multiple national accolades for its commitment to energy efficiency, customer service, and philanthropic efforts [1] Awards and Recognition - Meritage Homes was recognized at the 21st Annual Avid Awards for Top Rated Customer Experience, with thirteen divisions scoring among the top 25% in customer ratings nationwide [11] - The company received the EPA's ENERGY STAR Market Leader Award for its leadership in promoting energy efficiency and reducing energy bills [4] - Meritage was named one of America's Greenest Companies for 2024 by Newsweek and featured on USA Today's list of America's Climate Leaders [6] - The company was highlighted in U.S. News & World Report's Best Companies to Work For in the 'Best in Construction' and 'Best Companies in the West' categories [7] Philanthropic Efforts - Meritage received the President's Volunteer Service Award for its partnership with No Child Hungry, contributing over 1,300 volunteer hours and packing nearly 260,000 meal kits in the past two years [12] Company Performance - Meritage has delivered over 180,000 homes in its 38-year history and is recognized for its distinctive style, quality construction, and award-winning customer experience [9] - The company has been named an ENERGY STAR Partner of the Year by the EPA 11 times and has completed over 126,000 ENERGY STAR certified homes since 2009 [17] - Meritage was included on Forbes' list of 2024 Most Successful Mid-Cap Companies based on sales and earnings growth, return on equity, and total stock return over the last five years [13] Leadership Statement - CEO Phillippe Lord expressed pride in the company's recognition for sustainable construction and customer service, as well as the President's Volunteer Service Award, highlighting the company's core values [14]

Company Overview - Meritage Homes has delivered over 180,000 homes in its 38-year history, known for distinctive style, quality construction, and award-winning customer experience [4] - The company is recognized as an industry leader in energy-efficient homebuilding, receiving multiple awards from the U.S. Environmental Protection Agency (EPA) [4] Financial Information - Meritage Homes plans to release its second quarter 2024 results on July 24, 2024, after market close, with a conference call scheduled for July 25, 2024, at 8:00 a.m. Pacific Time [5] Market Position - 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 [6] - The company's operations span across several states including Arizona, California, Colorado, Utah, Texas, Florida, Georgia, North Carolina, South Carolina, and Tennessee [6]

Company Overview - Meritage Homes is the fifth-largest public homebuilder in the United States based on homes closed in 2023 [2] - The company operates in multiple states including Arizona, California, Colorado, Utah, Texas, Florida, Georgia, North Carolina, South Carolina, and Tennessee [2] - Meritage Homes has delivered over 180,000 homes in its 38-year history, known for distinctive style, quality construction, and award-winning customer experience [5] Financial Information - Meritage Homes plans to release its second quarter 2024 results on July 24, 2024, after market close [4] - A conference call to discuss the results will be held on July 25, 2024, at 8:00 a.m. Pacific Time [4] Industry Leadership - The company is recognized as an industry leader in energy-efficient homebuilding, having received multiple awards from the U.S. Environmental Protection Agency [5] - Meritage Homes is an eleven-time recipient of the EPA's ENERGY STAR® Partner of the Year for Sustained Excellence Award [5]

Core Insights - Meritage Homes is continuing its partnership with Operation Homefront for the 11th consecutive year, focusing on building and donating energy-efficient homes for veteran families in 2024 [1][2] - The company plans to construct and donate a total of 20 homes, with specific projects in Austin, TX, and Charlotte, NC [1][3] Company Overview - Meritage Homes is the fifth largest public homebuilder in the U.S., based on homes closed in 2023, and operates in multiple states including Arizona, California, Texas, and Florida [5] - The company has delivered over 180,000 homes in its 38-year history and is recognized for its energy-efficient homebuilding practices [6] Partnership Details - The homes provided through the partnership will be mortgage-free and equipped with modern, energy-efficient features, including ENERGY STAR® appliances and smart home technology [2][9] - The recipients of the homes will be selected by Operation Homefront, with key handover ceremonies planned around Veterans Day in November [3] Community Impact - Operation Homefront aims to support military families by providing critical financial assistance and housing solutions, with 88% of its expenditures directed towards programs that benefit these families [8] - The homes are designed to help military families build roots in their communities, reflecting a commitment to enhancing their quality of life [2][4]

Core Points - Meritage Homes is continuing its partnership with Operation Homefront for the 11th consecutive year, focusing on building and donating energy-efficient homes for veteran families in 2024 [1][2] - The company will donate a total of 20 homes, with new builds in Austin, TX, and Charlotte, NC, featuring modern designs and energy-efficient features [1][2] - The homes will be presented to selected veteran families during ceremonies in November around Veterans Day [3] Company Overview - Meritage Homes is the fifth largest public homebuilder in the U.S., based on homes closed in 2023, and operates in multiple states including Texas, California, and Florida [5] - The company has delivered over 180,000 homes in its 38-year history and is recognized for its energy-efficient homebuilding practices [6] - Meritage Homes has received multiple awards from the U.S. Environmental Protection Agency for its commitment to energy efficiency [6] Partnership with Operation Homefront - Operation Homefront is a nonprofit organization dedicated to supporting military families, with 88% of its expenditures going directly to programs that assist these families [8] - The partnership aims to provide stable housing for military families, helping them thrive in their communities [4][8]

Core Viewpoint - Meritage Homes reported strong first-quarter 2024 earnings, with both earnings and total revenues exceeding expectations and showing year-over-year growth, driven by higher deliveries and effective strategies [2][3]. Earnings & Revenue Discussion - Earnings per share (EPS) reached $5.06, surpassing the Zacks Consensus Estimate and the previous year's figure of $3.54 by 42.9% [3]. - Total revenues amounted to $1.472 billion, reflecting a 14.5% increase from $1.285 billion in the prior year [3]. Segment Discussion - Homebuilding revenues were $1.468 billion, a 15% increase from $1.26 billion in the prior-year quarter, exceeding the consensus estimate by 14.5% [4]. - Home closing revenues totaled $1.466 billion, up 16% year-over-year, while land closing revenues fell 87% to $2.31 million [4]. Operational Metrics - The company closed 3,507 homes, a 21% increase from 2,897 units year-over-year, with an average selling price (ASP) of $418,000, down 4% from the previous year [5]. - Total home orders rose 14% to 3,991 homes, with a dollar value increase of 8% to $1.63 billion [6]. Backlog and Margins - The backlog at quarter-end was 3,033 units, down 23% year-over-year, with a backlog value of $1.24 billion, a decrease of 29% [7]. - Adjusted home closing gross margin expanded by 340 basis points to 25.8% [7]. Financial Services - Revenues from the Financial Services segment increased by 11% to $6.35 million compared to the prior-year quarter [8]. Balance Sheet - Cash and cash equivalents at the end of Q1 2024 were $905.3 million, down from $921.2 million at the end of 2023 [10]. - The company owned or controlled 66,400 lots, an increase from 60,900 lots a year ago [10]. Dividend and Share Repurchase - The quarterly cash dividend was raised to 75 cents per share from 27 cents, with $27.2 million paid in dividends during Q1 [11]. - The company repurchased 362,419 shares for $55.9 million, with $129.1 million remaining under the authorized repurchase program [11]. 2024 Outlook - Meritage projects 14,500-15,000 home closings for the year, expecting home closing revenues of $6-$6.2 billion [12]. - EPS is anticipated to be in the range of $19.20-$20.70, with an effective tax rate of 22.5% [12]. Estimate Revisions - Recent estimates for the company have trended upward, with a consensus estimate shift of 21.09% [13]. VGM Scores - Meritage has a subpar Growth Score of D, a Momentum Score of A, and an overall VGM Score of B, indicating a favorable position in the investment strategy [14]. Industry Performance - Meritage operates within the Zacks Building Products - Home Builders industry, where competitor PulteGroup reported revenues of $3.95 billion, a year-over-year increase of 10.5% [16].

Company Overview - Meritage Homes (MTH) currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting a favorable outlook for investors [3] Price Performance - Over the past week, MTH shares increased by 1.51%, outperforming the Zacks Building Products - Home Builders industry, which rose by 1.18% [5] - In the last month, MTH's price change was 12.69%, significantly higher than the industry's 4.5% [5] - Over the past quarter, MTH shares have gained 14.13%, and over the last year, they have increased by 54.96%, while the S&P 500 only moved 7.23% and 28.67% respectively [6] Trading Volume - MTH's average 20-day trading volume is 451,433 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Estimates - In the past two months, 9 earnings estimates for MTH have been revised upwards, while none have been lowered, raising the consensus estimate from $17.72 to $20.04 [9] - For the next fiscal year, 8 estimates have increased, with only 1 downward revision during the same period [9] Conclusion - Given the strong momentum indicators and positive earnings outlook, MTH is positioned as a 2 (Buy) stock with a Momentum Score of A, making it a potential candidate for near-term investment [10]