Meritage Homes A Home Building Stock for 2020

Meritage HomesMeritage Homes Corp. (NYSE: MTH) is a residential property developer. It is engaged in both home building and financial services, giving it fully integrated exposure to the home market. With the market beginning to recover after months of slowdown, is now the time to buy this stock?

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Meritage Homes has generated revenue growth for five consecutive fiscal years, and gross income has expanded during the same period. In 2019, revenue increased by 3.92%, while gross income increased by 6.94%. The company ended the year with a gross margin of 18.80% and an EBITDA margin of 8.70%.

Even with the ongoing Coronavirus Pandemic, Meritage is still surprising analysts. On its quarterly earnings call last week, the company announced earnings of $2.38 per share, significantly outperforming the $1.31 per share that it generated a year ago. Revenue for the quarter was $1.03 billion, compared to $863.05 million a year ago.

With homebuyer activity increasing, the company has the potential to continue outperforming estimates throughout the year. Investors have taken note, sending the stock price up 15.27% over the previous five days. There’s momentum here for more growth, making this a top home building stock to consider in 2020.

Key Data:

  • 1 Year Price Growth: 97%
  • YTD Price Growth: 53%
  • 3 Month Price Growth: 29%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.

 

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The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

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