Markets

Is Meritage Homes (MTH) Stock Outpacing Its Construction Peers This Year?

Investors focused on the Construction space have likely heard of Meritage Homes (MTH), but is the stock performing well in comparison to the rest of its sector peers? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question.

Meritage Homes is one of 104 individual stocks in the Construction sector. Collectively, these companies sit at #1 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. MTH is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for MTH's full-year earnings has moved 13.19% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, MTH has returned 57.65% so far this year. Meanwhile, stocks in the Construction group have gained about 10.61% on average. As we can see, Meritage Homes is performing better than its sector in the calendar year.

To break things down more, MTH belongs to the Building Products - Home Builders industry, a group that includes 16 individual companies and currently sits at #5 in the Zacks Industry Rank. Stocks in this group have gained about 25.71% so far this year, so MTH is performing better this group in terms of year-to-date returns.

MTH will likely be looking to continue its solid performance, so investors interested in Construction stocks should continue to pay close attention to the company.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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