
LGI Homes (LGIH) Stock Forecast & Price Target
LGI Homes (LGIH) Analyst Ratings
Bulls say
LGI Homes Inc. has demonstrated a significant improvement in net margins, climbing from a low of 1.8% in the first quarter of fiscal 2025 to 8.7% in the second quarter, indicating a potential stabilization in profitability. The company benefits from robust demand catalysts driven by job growth and consumer confidence, which support sales in both entry-level and move-up housing segments. Furthermore, the market's shift towards reduced discounting and incentives by competitors could create a favorable environment for LGI Homes, enhancing its pricing power and profitability prospects.
Bears say
LGI Homes is experiencing a decline in unit closings, leading to a reduced fourth-quarter estimate of 1,108 homes closed, down from prior expectations, which reflects a decrease in the company's closing pace to 2.6 homes per month. The third quarter of fiscal 2025 saw unit closings fall short of estimates, with an absorption pace that was 41% lower year-over-year compared to the same quarter in the previous year. Additionally, increased competition in Texas has negatively impacted the net margin of LGI's Central segment, which generates the majority of the company's revenue, contributing to a negative outlook on the stock.
This aggregate rating is based on analysts' research of LGI Homes and is not a guaranteed prediction by Public.com or investment advice.
LGI Homes (LGIH) Analyst Forecast & Price Prediction
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