Meritage Homes(US:MTH) ZACKSยท2024-09-19 14:21Company 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]