
Meritage Homes (MTH) Stock Forecast & Price Target
Meritage Homes (MTH) Analyst Ratings
Bulls say
Meritage Homes is poised for earnings growth due to recent investments in land and an increase in planned community counts, indicating a strong strategic focus on expansion. Projections for return on equity (ROE) stand at an attractive 9.6-9.7%, suggesting effective utilization of equity in generating profits. Additionally, the anticipated gross margins of 20.9% and 21.0% for 2025-2026, along with stable community growth close to 10%, reinforce a positive outlook for the company's financial performance.
Bears say
The financial outlook for Meritage Homes reflects a significant reduction in forward earnings per share (EPS) estimates by 13%, driven by anticipated lower deliveries, declining gross margins, and increases in selling, general, and administrative (SG&A) expenses. The company is facing headwinds from elevated interest rates, high home prices, and stretched affordability, contributing to an uncertain demand environment that may adversely impact profit margins and investment returns. Additionally, Meritage's relatively small size and limited share count can lead to earnings volatility, exacerbating the challenges posed by the current market conditions.
This aggregate rating is based on analysts' research of Meritage Homes and is not a guaranteed prediction by Public.com or investment advice.
Meritage Homes (MTH) Analyst Forecast & Price Prediction
Start investing in Meritage Homes (MTH)
Order type
Buy in
Order amount
Est. shares
0 shares