In a challenging market, Meritage Homes Corp (NYSE:) stock has touched a 52-week low, dipping to $76. According to InvestingPro data, the company trades at an attractive P/E ratio of 13.9x, with technical indicators suggesting oversold conditions. This level reflects a notable downturn from its previous positions, as investors navigate through a period marked by economic uncertainties and a cooling housing market. While the stock has declined over the past year, analysts maintain price targets ranging from $76.50 to $126, and InvestingPro analysis suggests the stock is currently undervalued. The company maintains strong financial health with a robust current ratio of 10.12, demonstrating solid liquidity despite market headwinds. For deeper insights and additional ProTips on MTH’s valuation, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Meritage Homes Corporation has been the subject of significant attention from prominent financial institutions. JPMorgan downgraded the company’s stock to neutral, citing a valuation in line with its smaller-cap peers. The company’s financial performance, including gross margins and return on equity, were factored into this decision. In contrast, Goldman Sachs upgraded its rating for Meritage Homes from Neutral to Buy, anticipating the company to benefit from housing market dynamics over the next 12-18 months. However, Raymond (NS:) James downgraded Meritage Homes’ stock from Outperform to Market Perform due to concerns over housing affordability.
Meritage Homes also announced a two-for-one stock split, intending to make stock ownership more accessible to a broader base of investors. The company reported strong Q3 2024 results with home closing revenue of $1.6 billion and a gross margin of 24.8%. Yet, the average selling price saw a 6% year-over-year decrease to $406,000.
Meritage Homes recently acquired Elliott Homes, which is expected to strengthen its position in the Gulf Coast markets. For the full year 2025, the company projects closings between 16,500 and 17,500 units with home closing revenue ranging from $6.7 billion to $7.1 billion. These are some of the recent developments surrounding Meritage Homes Corporation.
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