
Meritage Homes (MTH) Stock Forecast & Price Target
Meritage Homes (MTH) Analyst Ratings
Bulls say
Meritage Homes is positioned for future earnings growth, driven by recent land investments and an increase in planned community counts, which contribute positively to overall operational expansion. The company is projected to achieve a return on equity (ROE) of approximately 9.6-9.7%, indicating a strong financial performance. Additionally, for the years 2025-2026, forecasted gross margins are expected to stabilize around 20.9% and 21.0%, while community count growth remains robust at nearly 10%, enhancing the company's revenue-generating capabilities.
Bears say
Meritage Homes has faced a negative outlook due to a reduction in forward earnings per share (EPS) estimates by 13%, driven by decreased home deliveries, declining gross margins, and increased selling, general, and administrative expenses (SG&A). The homebuilding environment remains challenging, characterized by elevated interest rates, high home prices, and affordability issues, which contribute to uncertainty regarding housing demand and profit margins. Additionally, the company's relatively small size and low share count may lead to considerable earnings volatility from minor operational changes, further complicating its financial stability.
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
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