Zacks Research Reduces Earnings Estimates for Meritage Homes

Meritage Homes Corporation (NYSE:MTH) – Analysts at Zacks Research decreased their Q3 2027 earnings per share estimates for shares of Meritage Homes in a research report issued on Wednesday, February 11th. Zacks Research analyst Team now forecasts that the construction company will earn $1.83 per share for the quarter, down from their prior forecast of $2.16. Zacks Research has a “Strong Sell” rating on the stock. The consensus estimate for Meritage Homes’ current full-year earnings is $9.44 per share. Zacks Research also issued estimates for Meritage Homes’ FY2027 earnings at $7.12 EPS and FY2028 earnings at $8.26 EPS.

Meritage Homes (NYSE:MTH) last issued its quarterly earnings results on Wednesday, January 28th. The construction company reported $1.67 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.55 by $0.12. The business had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.51 billion. Meritage Homes had a return on equity of 9.28% and a net margin of 7.73%.The firm’s revenue for the quarter was down 11.9% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $4.72 earnings per share.

A number of other brokerages have also weighed in on MTH. Keefe, Bruyette & Woods cut their price target on shares of Meritage Homes from $78.00 to $76.00 and set a “market perform” rating on the stock in a research note on Tuesday, February 3rd. Citizens Jmp assumed coverage on shares of Meritage Homes in a report on Wednesday, January 7th. They issued a “market outperform” rating and a $90.00 target price on the stock. Wall Street Zen downgraded shares of Meritage Homes from a “hold” rating to a “sell” rating in a report on Sunday, January 11th. Bank of America restated a “neutral” rating and set a $82.00 target price (up previously from $75.00) on shares of Meritage Homes in a research note on Friday, January 16th. Finally, UBS Group set a $95.00 target price on shares of Meritage Homes in a report on Friday, January 30th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $83.63.

Meritage Homes Stock Down 1.7%

Shares of NYSE:MTH opened at $76.69 on Friday. The company has a market capitalization of $5.40 billion, a PE ratio of 12.13, a PEG ratio of 1.37 and a beta of 1.48. Meritage Homes has a 52 week low of $59.27 and a 52 week high of $84.74. The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.95 and a current ratio of 2.10. The company has a 50 day moving average price of $71.33 and a two-hundred day moving average price of $72.07.

Meritage Homes Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, December 31st. Stockholders of record on Wednesday, December 17th were given a $0.43 dividend. This represents a $1.72 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date of this dividend was Wednesday, December 17th. Meritage Homes’s payout ratio is presently 27.22%.

Hedge Funds Weigh In On Meritage Homes

A number of hedge funds have recently bought and sold shares of the business. Salomon & Ludwin LLC boosted its holdings in Meritage Homes by 63.9% in the 4th quarter. Salomon & Ludwin LLC now owns 372 shares of the construction company’s stock valued at $25,000 after purchasing an additional 145 shares during the period. Larson Financial Group LLC boosted its stake in shares of Meritage Homes by 265.5% in the third quarter. Larson Financial Group LLC now owns 402 shares of the construction company’s stock valued at $29,000 after buying an additional 292 shares during the period. Atlantic Union Bankshares Corp bought a new stake in shares of Meritage Homes in the second quarter valued at approximately $33,000. Brown Lisle Cummings Inc. acquired a new stake in Meritage Homes during the fourth quarter worth approximately $39,000. Finally, EverSource Wealth Advisors LLC increased its stake in Meritage Homes by 194.9% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 699 shares of the construction company’s stock worth $47,000 after acquiring an additional 462 shares during the period. 98.44% of the stock is owned by institutional investors.

Trending Headlines about Meritage Homes

Here are the key news stories impacting Meritage Homes this week:

• Neutral Sentiment: Unrelated ticker note — a press release from Mithril (uses the symbol MTH on other exchanges) announced exploration results for the Copalquin project; this is not Meritage Homes news but can cause ticker confusion for some platforms. Mithril Provides Exploration Update Over Multiple Targets, Copalquin Silver-Gold Project, Mexico
• Negative Sentiment: Zacks Research issued a string of downward revisions to Meritage’s quarterly and annual EPS forecasts and retained a “Strong Sell” rating — a clear negative for sentiment. Examples: Q3 2027 cut from $2.16 to $1.83; FY2027 cut from $8.11 to $7.12; FY2028 pegged at $8.26 (below consensus).
• Negative Sentiment: Additional Zacks cuts span multiple near‑term quarters and FY2026: Q1 2026 now $1.15 (from $1.29), Q2 2026 $1.77 (from $1.85), Q3/Q4 2026 trimmed to $1.60 and $1.67, and FY2026 lowered to $6.19 (from $6.65). These broad reductions suggest Zacks expects weaker margin/revenue trends than previously modeled.

About Meritage Homes

Meritage Homes Corporation is a national homebuilder and residential developer headquartered in Scottsdale, Arizona. Founded in 1985 as Winchester Homes and later rebranded to Meritage Homes, the company specializes in designing, constructing and selling single‐family detached and attached homes. With a focus on energy efficiency and sustainable building practices, Meritage Homes markets its properties under the GreenSmart program, which integrates high‐performance features aimed at reducing long‐term energy and water consumption for homebuyers.

The company’s core activities encompass land acquisition, residential community planning, home design, construction management and real estate sales.