Últimas noticias sobre Meritage Homes (NYSE:MTH) Bolsa

Meritage Homes

Meritage Homes Corp is engaged as a designer and builder of single-family attached and detached homes. It has operations in three regions: West, Central, and East, which are comprised of ten states: Arizona, California, Colorado, Texas, Florida, Georgia, North Carolina, South Carolina, Tennessee, and Utah. The company operates with two principal business segments; homebuilding and financial services. The homebuilding segments are engaged in the business of acquiring and developing land, constructing homes, marketing and selling those homes and providing warranty and customer services and the financial services segment offer title and escrow, mortgage, and insurance services. The company generates key revenue from the homebuilding segment.

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Conoce las acciones que lideran el premercado tras movimientos clave: Check-Cap sube un 52,2% gracias a nueva patente.

Las acciones de Check-Cap suben un 52%; 20 acciones que se están moviendo antes de la apertura del mercado

Meritage Homes Corp

Monetha

YUNHONG GUIXIN GROUP HLDG by YUNHONG GUIXIN GROUP HLDGS LTD.

M3 Inc

Shares of Check-Cap Ltd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHEK#NASDAQ">CHEK</a>) rose sharply in today's pre-market trading after the company announced it was granted European Patent Number EP4087488 titled &#8220;RADIATION CAPSULE FOR BOWEL DISEASE IMAGING <a href="https://www.benzinga.com/quote/CHEK">AND LOCALIZE DRUG DELIVERY&#8221;.</a>
Check-Cap shares jumped 52.2% to $1.75 in the pre-market trading session.
Here are some other stocks moving in pre-market trading.
<h3 class="wp-block-heading">Gainers</h3>
<ul>
<li>Treasure Global Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TGL#NASDAQ">TGL</a>) gained 151.2% to $0.4760 in pre-market trading after gaining around 7% on Thursday.</li>
<li>BioLineRx Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BLRX#NASDAQ">BLRX</a>) gained 91.4% to $0.4891 in pre-market trading after surging 20% on Thursday.</li>
<li>mF International Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MFI#NASDAQ">MFI</a>) rose 80% to $1.30 in pre-market trading after gaining around 8% on Thursday.</li>
<li>MGO Global, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MGOL#NASDAQ">MGOL</a>) rose 48.5% to $0.8776 in pre-market trading after climbing around 5% on Thursday.</li>
<li>Nine Energy Service, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NINE#NYSE">NINE</a>) gained 30.9% to $1.61 in pre-market trading following a 10% surge on Thursday.</li>
<li>Inspire Veterinary Partners, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IVP#NASDAQ">IVP</a>) gained 27.6% to $0.2630 in pre-market trading after gaining 8% on Thursday.</li>
<li>SES AI Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SES#NYSE">SES</a>) gained 27.3% to $2.42 in pre-market trading after dipping 13% on Thursday.</li>
<li>Garrett Motion Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GTX#NYSE">GTX</a>) rose 11.3% to $9.92 in pre-market trading.</li>
<li>Meritage Homes Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTH#NYSE">MTH</a>) gained 10.5% to $84.00 in pre-market trading.</li>
</ul>
<h3 class="wp-block-heading">Losers</h3>
<ul>
<li>Coeptis Therapeutics Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COEP#NASDAQ">COEP</a>) fell 30.4% to $4.11 in pre-market trading after jumping 7% on Thursday.</li>
<li>T Stamp Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IDAI#NASDAQ">IDAI</a>) declined 19.8% to $0.5470 in pre-market trading after dipping 23% on Thursday. The company announced it will implement a 1-for-15 reverse stock split.</li>
<li>HWH International Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HWH#NASDAQ">HWH</a>) fell 18.3% to $0.5300 in pre-market trading.</li>
<li>Reservoir Media, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RSVR#NASDAQ">RSVR</a>) shares dipped 18% to $7.00 in pre-market trading after falling over 5% on Thursday.</li>
<li>Creative Media &amp; Community Trust Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CMCT#NASDAQ">CMCT</a>) shares fell 17.9% to $0.1716 in pre-market trading. Creative Media announced approval for a 1-for-10 reverse stock split.</li>
<li>IT Tech Packaging, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITP#NYSE">ITP</a>) fell 14.9% to $0.5700 in today's pre-market trading after jumping more than 11% on Thursday.</li>
<li>Ark Restaurants Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARKR#NASDAQ">ARKR</a>) fell 13.7% to $11.01 in pre-market trading after gaining 16% on Thursday.</li>
<li>Tejon Ranch Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRC#NYSE">TRC</a>) shares fell 11.4% to $14.01 in pre-market trading.</li>
<li>Aura Biosciences, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AURA#NASDAQ">AURA</a>) dipped 11.1% to $0.75 in pre-market trading.</li>
<li>Lincoln Educational Services Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LINC#NASDAQ">LINC</a>) shares tumbled 7.7% to $14.10 in pre-market trading after falling over 3% on Thursday.</li>
</ul>
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<li><a href="https://www.benzinga.com/25/01/42763645/how-to-earn-500-a-month-from-acuity-brands-stock-ahead-of-q1-earnings">How To Earn $500 A Month From Acuity Brands Stock Ahead Of Q1 Earnings</a></li>
</ul>

Why Check-Cap Shares Are Trading Higher By Over 52%; Here Are 20 Stocks Moving Premarket

WIIM

BLDR

IESC

Shares of homebuilders, construction and household durables stocks are trading lower amid overall market weakness following the Fed's rate decision to cut rates by 25 basis points.

JPMorgan analysts delivered a grim outlook for homebuilders on Friday as the firm moves to a "more cautious, less constructive" approach <a href="https://www.benzinga.com/etfs/sector-etfs/24/12/42475272/mortgage-rates-drop-present-opportunities-for-homebuilders">toward the industry. </a>
The JPMorgan analysts, led by Michael Rihault, gave multiple reasons for the shifted 2025 outlook. Renault pointed to several key housing demand drivers, including affordability, interest rates and employment growth, as unlikely to improve significantly in 2025. 
Read More: <a href="https://www.benzinga.com/24/12/42464301/how-will-big-banks-fare-under-trump-in-2025">Big Banks Will Get Bigger Under Trump In 2025: Analyst</a>
The level of existing homes for sale is rising in many key markets. New home supplies remain plentiful, the analyst noted. As a result, Rihault sees growth in home prices to moderate over the next year, slowing to a flat to slightly upward trend. 
JPMorgan analysts expect the incoming Trump administration's immigration policies to be potentially disruptive to the homebuilding industry due to the largest percentage of immigrants in the construction workforce since 2004.&nbsp;
Additionally, Rihaut sees return on equity and earnings growth slowing in 2025 with more downside risk than upside to gross margins and home sales pace.&nbsp;
JPMorgan downgraded several homebuilders and lowered its price targets on the stocks.&nbsp;
Downgrades:&nbsp;
<ul>
<li>JPMorgan&#8217;s Rehaut downgraded D.R. Horton, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>) from Neutral to Underweight and lowered the price target from $188 to $156.</li>
</ul>
<ul>
<li>Rehaut also downgraded Toll Brothers, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TOL#NYSE">TOL</a>) from Overweight to Neutral and lowered the price target from $166 to $150.</li>
</ul>
<ul>
<li>JPMorgan downgraded Meritage Homes Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTH#NYSE">MTH</a>) from Overweight to Neutral and lowered the price target from $220 to $197.</li>
</ul>
Price Action: Shares of all three home builders are trading lower on Friday, according to Benzinga Pro. Toll Brothers shares are down 2.74% at $134.66, D.R. Horton shares are down 1.37% at $149.14 and Meritage Homes shares are down 4.72% at $169.07.
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This image was generated using artificial intelligence via MidJourney.&nbsp;

Analyst Color

News

Downgrades

Analyst Ratings

Real Estate

Homebuilders 2025 Outlook: 'More Cautious, Less Constructive,' Analyst Says

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our <a href="https://www.benzinga.com/analyst-stock-ratings">analyst ratings page</a>.
<ul>
<li>Barclays slashed the price target for The AES Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AES#NYSE">AES</a>) from $23 to $17. Barclays analyst Nicholas Campanella maintained an Overweight rating. AES shares closed at $13.41 on Thursday. See how other analysts view this stock.</li>
<li>Morgan Stanley raised the price target for RH (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RH#NYSE">RH</a>) from $310 to $435. Morgan Stanley analyst Simeon Gutman maintained an Equal-Weight rating. RH shares closed at $381.38 on Thursday. <a href="https://www.benzinga.com/quote/RH/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Rosenblatt boosted the price target for Ciena Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CIEN#NYSE">CIEN</a>) from $75 to $94. Rosenblatt analyst Mike Genovese maintained a Neutral rating. Ciena shares closed at $84.52 on Thursday. <a href="https://www.benzinga.com/quote/CIEN/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Morgan Stanley cut NIKE, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>) price target from $82 to $80. Morgan Stanley analyst Alex Straton maintained an Equal-Weight rating. Nike shares settled at $77.96 on Thursday. <a href="https://www.benzinga.com/quote/NKE/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Tigress Financial raised Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) price target from $86 to $115. Tigress Financial analyst Ivan Feinseth maintained a Buy rating. Walmart shares closed at $93.88 on Thursday. <a href="https://www.benzinga.com/quote/WMT/analyst-ratings">See how other analysts view this stock.</a></li>
<li>JP Morgan cut D.R. Horton, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>) price target from $188 to $156. JP Morgan analyst Michael Rehaut downgraded the stock from Neutral to Underweight. D.R. Horton shares closed at $151.21 on Thursday.  <a href="https://www.benzinga.com/quote/DHI/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Stifel cut Editas Medicine, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EDIT#NASDAQ">EDIT</a>) price target from $11 to $3. Stifel analyst Dae Gon Ha downgraded the stock from Buy to Hold. Editas Medicine shares closed at $1.89 on Thursday. See how other analysts view this stock.</li>
<li>Deutsche Bank boosted the price target for Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) from $190 to $240. Deutsche Bank analyst Ross Seymore maintained a Buy rating. Broadcom shares settled at $180.66 on Thursday. <a href="https://www.benzinga.com/quote/AVGO/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>JP Morgan slashed Meritage Homes Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTH#NYSE">MTH</a>) price target from $220 to $197. JP Morgan analyst Michael Rehaut downgraded the stock from Overweight to Neutral. Meritage Homes shares closed at $177.45 on Thursday. <a href="https://www.benzinga.com/quote/MTH/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Barclays raised Marriott Vacations Worldwide Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VAC#NYSE">VAC</a>) price target from $97 to $116. Barclays analyst Brandt Montour upgraded the stock from Equal-Weight to Overweight. Marriott Vacations shares closed at $94.85 on Thursday. <a href="https://www.benzinga.com/quote/MSFT/analyst-ratings">See how other analysts view this stock</a>.</li>
</ul>
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JP Morgan analyst Michael Rehaut downgrades Meritage Homes (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTH#NYSE">MTH</a>) from Overweight to Neutral and lowers the price target from $220 to $197.

JP Morgan Downgrades Meritage Homes to Neutral, Lowers Price Target to $197

In the current market session, Meritage Homes Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTH#NYSE">MTH</a>) share price is at $183.81, after a 2.22% spike. Moreover, over the past month, the stock fell by 5.77%, but in the past year, increased by 15.54%. Shareholders might be interested in knowing whether the stock is overvalued, even if the company is performing up to par in the current session. 

<img src="https://www.benzinga.com/files/images/story/2024/1733503512_0.png" alt="Past Year Chart" />

<h3>Evaluating Meritage Homes P/E in Comparison to Its Peers</h3>
The P/E ratio is used by long-term shareholders to assess the company's market performance against aggregate market data, historical earnings, and the industry at large. A lower P/E could indicate that shareholders do not expect the stock to perform better in the future or it could mean that the company is undervalued. 
Meritage Homes has a lower P/E than the aggregate P/E of 14.49 of the Household Durables industry. Ideally, one might believe that the stock might perform worse than its peers, but it's also probable that the stock is undervalued. 

<img src="https://www.benzinga.com/files/images/story/2024/1733503512_1.png" alt="Guage" />

In conclusion, the price-to-earnings ratio is a useful metric for analyzing a company's market performance, but it has its limitations. While a lower P/E can indicate that a company is undervalued, it can also suggest that shareholders do not expect future growth. Additionally, the P/E ratio should not be used in isolation, as other factors such as industry trends and business cycles can also impact a company's stock price. Therefore, investors should use the P/E ratio in conjunction with other financial metrics and qualitative analysis to make informed investment decisions.

Intraday Update

Price Over Earnings Overview: Meritage Homes

TMHC

Shares of homebuilders and housing-linked stocks are trading higher amid a drop in yields.

Meritage Homes Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTH#NYSE">MTH</a>, "Meritage" or the "Company"))), the fifth-largest homebuilder in the U.S., today announced that its Board of Directors has declared a two-for-one stock split of Meritage's common stock in the form of a stock dividend. Each stockholder of record at the close of business on December 31, 2024 will receive one additional share of common stock for each share of common stock held, payable after the close of market on January 2, 2025. Trading will begin on a split-adjusted basis on January 3, 2025.

Stock Split

Meritage Homes Announces 2-For-1 Stock Split; Trading Will Begin On A Split-Adjusted Basis On January 3, 2025

Meritage also announced that its Board of Directors has approved a $250 million increase to the Company's share repurchase authorization. This increase combined with $15 million in systematic buybacks on a quarter to date basis brings the Company's total authorized share repurchase program to $334 million as of November 21, 2024.

Reported Earlier, Meritage Homes Declares $0.75 Dividend And Expands Share Buyback By $250M

Raymond James analyst Buck Horne downgrades Meritage Homes (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTH#NYSE">MTH</a>) from Outperform to Market Perform.

Raymond James Downgrades Meritage Homes to Market Perform

Keefe, Bruyette &amp; Woods analyst Jade Rahmani maintains Meritage Homes (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTH#NYSE">MTH</a>) with a Market Perform and lowers the price target from $210 to $198.

Keefe, Bruyette & Woods Maintains Market Perform on Meritage Homes, Lowers Price Target to $198

Macro Economic Events

Macro Notification

Econ #s

Economics

General

MDCE

USA Pending Home Sales (MoM) For September 7.4% Vs 1.9% Est.; 0.6% Prior

Contracts

Meritage Homes Announced The Acquisition Of Over 5,500 Lots And Expects To Commence Production Operations Before The End Of 2024

Meritage Homes (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTH#NYSE">MTH</a>) is looking for Q4 GAAP EPS of $4.10-4.60 vs $4.97 analyst estimate..

Guidance

Meritage Homes Sees Q4 GAAP EPS $4.10-4.60 vs $4.97 Est

Meritage Homes Expects Q4 Home Closing Revenue Of $1.50B - $1.59B, EPS Of $4.10 - $4.60, Home Closing Volume Of 3,750 - 3,950 Units

Meritage Homes (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTH#NYSE">MTH</a>) reported quarterly earnings of $5.34 per share which beat the analyst consensus estimate of $4.97 by 7.44 percent. This is a 10.7 percent decrease over earnings of $5.98 per share from the same period last year. The company reported quarterly sales of $1.588 billion which beat the analyst consensus estimate of $1.58 billion by 0.56 percent. This is a 1.55 percent decrease over sales of $1.61 billion the same period last year.

Earnings

Earnings Beats

Meritage Homes Q3 2024 GAAP EPS $5.34 Beats $4.97 Estimate, Sales $1.588B Beat $1.58B Estimate

Shares of homebuilders and housing-related stocks are trading lower in possible sympathy with D.R. Horton, which reported worse-than-expected Q4 EPS and sales.

Meritage Homes's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTH#NYSE">MTH</a>) short percent of float has fallen 3.31% since its last report. The company recently reported that it has 964 thousand shares sold short, which is 3.8% of all regular shares that are available for trading. Based on its trading volume, it would take traders 2.87 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Meritage Homes Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1727278223_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Meritage Homes has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Meritage Homes's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Meritage Homes's peer group average for short interest as a percentage of float is 5.83%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Looking Into Meritage Homes's Recent Short Interest

KB Home (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kbh#NYSE">KBH</a>) is slated to report third-quarter fiscal 2024 results (ended Aug. 31) on Sept. 24, after the closing bell.
In the last reported quarter, KB Home&#39;s earnings and revenues beat the Zacks Consensus Estimate by 20.8% and 4.3%, respectively. On a year-over-year basis, earnings increased 11% on 3.4% lower revenues.
The company&#39;s earnings topped analysts&#39; expectations in 31 of the trailing 34 quarters.
<div class="chart_embed">
<h3>KB Home Price and EPS Surprise</h3>
<img alt="KB Home Price and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/9d/1727092560.png" style="height:263px; width:538px" title="" />
KB Home price-eps-surprise | KB Home Quote
</div>
<h2>How Are Estimates Placed for KBH?</h2>
For the quarter to be reported, the Zacks Consensus Estimate for earnings has remained unchanged at $2.04 per share over the past 60 days. The projected figure indicates an increase of 13.3% from the year-ago quarter&#39;s earnings of $1.80 per share.
The consensus estimate for revenues is pegged at $1.73 billion, implying growth of 8.8% from the prior-year quarter.
<h2>What the Zacks Model Unveils for KB Home</h2>
Our proven model predicts an earnings beat for KB Home this time around. This is because a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
Earnings ESP: KB Home has an Earnings ESP of +0.08%.
Zacks Rank: KB Home currently has a Zacks Rank #3.
<h2>Factors to Shape KBH&#39;s Q3 Results</h2>
Revenues: KB Home&#39;s top line in third-quarter fiscal 2024 is likely to have increased, given higher Housing revenues primarily attributable to growth in deliveries and favorable pricing. The company has been benefiting from the strong buyer demand, particularly for built-to-order homes, despite the volatility in mortgage rates.
The company&#39;s focus on personalization and its ability to offer both quick move-in and personalized homes might have helped the company drive growth. KB Home has also been utilizing mortgage buydowns as a key component of its strategy to maintain strong sales amid fluctuating mortgage rates.
Although the company has not provided an explicit forecast for its third-quarter absorption pace, the positive momentum from the fiscal second quarter &mdash; driven by strong demand, shorter build times, and strategic pricing &mdash; suggests that the absorption pace is expected to remain solid in the fiscal third quarter. The company is focusing on balancing pace and pricing to optimize margins while still driving volume.
The company expects housing revenues in the range of $1.65-$1.75 billion compared with the year-ago figure of $1.57 billion. KBH anticipates the average selling price&nbsp;to be $482,000, indicating an increase from $466,300 reported a year ago.
Our model projects housing revenues to grow 9.1% year over year to $1.72 billion in the quarter. We expect ASP to increase 3.3% to $481,500. We expect total deliveries in the quartet to grow 5.6% year over year.
Margins: Although initiatives like the Returns-Focused Growth Plan and Built-to-Order approach are positives, increasing construction and labor costs are likely to put pressure on the bottom line.
The company anticipates that the housing gross margin for the third quarter of 2024 will decline between 21% and 21.4% (compared with 21.5% in the year-ago quarter). This projection accounts for the concessions provided to homebuyers in the latter half of last year, which were influenced by the challenging market conditions at that time and is expected to close in this quarter.
Selling, general &amp; administrative expenses (SG&amp;A), as a percentage of housing revenues, are likely to be 9.9%-10.3%. We expect SG&amp;A expenses to be 10.2% in the quarter, the same as the year-ago figure.
The company expects adjusted operating margin between 10.8% and 11.4%. Our model predicts the adjusted operating margin to be 10.9% in the quarter, down from 11.4% a year ago.
The company expects an effective tax rate of approximately 24% for the quarter.
Orders &amp; Backlogs: We anticipate that new orders will increase to 3,357 units, up 8.4% from the previous year. With a limited supply of pre-owned homes available, homebuyers are turning their attention to builders who have increased their construction efforts to meet the rising demand. KB Home, along with other homebuilding companies, has benefited significantly from this trend despite ongoing challenges.
We expect the backlog to be 6,062 units, implying a decline from 7,008 units reported in the prior-year quarter.
Meanwhile, our model predicts Financial Services revenues to be $8.3 million for the fiscal third quarter. We expect Financial Services pretax income to be $12.2 million in the quarter compared with the year-ago quarter&#39;s figure of $9.9 million.
<h2>KB Home&#39;s Price Performance &amp; Valuation</h2>
KBH&#39;s stock has exhibited an upward movement in the past six months.&nbsp;The stock has gained 27.5%, outperforming the Zacks Building Products - Home Builders industry&#39;s rise of 16.4% in the same time frame.
The company has also outperformed its peer companies like Meritage Homes Corporation&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mth#NYSE">MTH</a>) (up 21.6% in the past six months) and Taylor Morrison Home Corporation&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tmhc#NYSE">TMHC</a>) (up 16%).
<h2>6-Month Price Performance of KBH Stock</h2>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/2d/78791.jpg?v=1075297864" />
Image Source: Zacks Investment Research
Technical indicators suggest continued strong performance for KBH. Notably, the 50-day SMA continues to read higher than the 200-day SMA, signaling the bullish trend.
<h2>KBH Stock Trades Above 50 and 200-Day Moving Average</h2>
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KBH stock is trading at a discount compared with the industry and slightly higher than its median. Despite the company&#39;s shares&#39; outperformance compared to its industry, KBH&#39;s current valuation is still considered undervalued. This might imply that the market has not yet fully recognized or priced in the company&#39;s potential growth prospects or earnings potential. The company is also trading currently at a discount compared to the industry&#39;s big shots like PulteGroup, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/phm#NYSE">PHM</a>).
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<h2>How to Play KB Home Stock?</h2>
Investors may want to hold KB Home stock due to its resilience in a challenging housing market, driven by strategic pricing and effective inventory management. Despite industry headwinds like expensive mortgages and slowing demand, KB Home has maintained strong financial performance through a focus on affordability and margin optimization. The company&#39;s BTO model has contributed to positive inventory dynamics, supporting confidence in their margin guidance for the second half of 2024.
While the recent Federal Reserve rate cut to 4.75%-5% may provide some market relief, its full impact on homebuilding remains uncertain, as mortgage rates may have already factored in the anticipated cut. Additionally, rising land costs, competition from the resale market, and supply chain disruptions pose challenges to the company&#39;s growth potential.
Though KB Home&#39;s stock has shown strength with a solid 50-day moving average and discounted valuation, a lack of upward estimate revisions in the past two months signals limited near-term upside. Investors might consider holding the stock while waiting for more favorable market conditions and further clarity on KB Home&#39;s long-term performance.
KB Home&#39;s operational resilience and strategic focus in a difficult environment make it a stock worth holding, although potential investors may opt for caution until clearer signals of stability emerge in both the company&#39;s performance and broader market trends.
<a href="https://www.zacks.com/stock/news/2339964/should-you-buy-sell-or-hold-kb-home-before-q3-earnings?cid=CS-BENZ-FT-analyst_blog|earnings_preview-2339964">To read this article on Zacks.com click here.</a>

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Should You Buy, Sell, or Hold KB Home Before Q3 Earnings?

Lennar Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/len#NYSE">LEN</a>) reported third-quarter fiscal 2024 results, wherein its earnings and revenues surpassed the Zacks Consensus Estimate.
On a year-over-year basis, revenues increased, given the company&#39;s emphasis on maintaining a steady production rate to drive sales momentum. Lennar strategically utilized pricing, incentives, marketing expenditure and dynamic pricing insights to ensure steady sales volume despite fluctuations in interest rates.
However, earnings fell by a cent from the year-ago period. LEN&#39;s stock plunged 2.4% in the after-hours trading session on Sept. 19. Investors&#39; sentiments might have been hurt by lower earnings and gross margin in the fiscal third quarter, as well as tepid fiscal fourth-quarter guidance.
<h2>Quarterly Numbers</h2>
LEN reported adjusted earnings per share (excluding mark-to-market gains on technology investments and one-time items in its Multifamily segment) of $3.90, which topped the Zacks Consensus Estimate of $3.62 by 7.7%. The metric, however, slipped 0.3% year over year from $3.91 per share.
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<h3>Lennar Corporation Price, Consensus and EPS Surprise</h3>
<img alt="Lennar Corporation Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/fa/1726841318.png" style="height:265px; width:589px" title="" />
Lennar Corporation price-consensus-eps-surprise-chart | Lennar Corporation Quote
Revenues of $9.42 billion topped the Zacks Consensus Estimate of $9.29 billion by 1.4% and rose 7.9% year over year from $8.73 billion.
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<h2>Segment Details</h2>
Homebuilding: Revenues of the segment totaled $9.05 billion, up 8.7% from the prior-year quarter. Under the Homebuilding umbrella, home sales contributed $9.02 billion to total revenues, up 8.8% from a year ago.
Land sales accounted for $19.5 million, down from $20.4 million in the prior-year quarter. The Other homebuilding unit contributed $8.6 million to homebuilding revenues, down from $12.3 million a year ago.
Home deliveries for the reported quarter improved 16% from the year-ago level to 21,516 units. The reported figure was better than our projection of 20,598 units for the quarter. The average sales price&nbsp;of homes delivered was $422,000, down 5.8% from the year-ago figure due to pricing to market through an increased use of incentives and product mix. Our model had predicted ASP to be $432,910 for the fiscal third quarter.
New orders rose 5% from the year-ago quarter to 20,587 homes. However, the potential value of net orders fell 0.9% year over year to $8.56 billion.
Backlog at the fiscal third-quarter end declined 20.5% from the year-ago quarter to 16,944 homes. Potential housing revenues from backlog decreased 21.4% year over year to $7.75 billion.
The gross margin on home sales was 22.5% for the quarter, down 190 basis points (bps). Notably, the reported figure came below our projection of 23% for the quarter. The decline was mainly due to decreased revenues per square foot and increased land costs year over year.
SG&amp;A expenses &mdash; as a percentage of home sales &mdash; decreased 30 bps to 6.7% due to a decrease in broker commissions and benefits of LEN&#39;s technology efforts.
Financial Services: The segment&#39;s revenues increased year over year to $273.3 million from $266.2 million for the reported quarter. Operating earnings for the quarter increased to $144.4 million from $149 million a year ago.
Lennar Multi-Family: Revenues of $93.4 million in the segment were down from $137.4 million in the prior-year quarter. The segment registered operating earnings of $78.9 million for the quarter against a loss of $8.7 million a year ago.
Lennar Other: The segment&#39;s revenues totaled $3.6 million, significantly down from $7.4 million a year ago. Its operating earnings were $20.1 million for the quarter against a loss of $26.2 million a year ago.
<h2>Financials</h2>
At the fiscal third-quarter end, Lennar had homebuilding cash and cash equivalents of $4.04 billion, down from $6.27 billion at the end of fiscal 2023. LEN has no outstanding borrowings under the $2.2 billion revolving credit facility, thereby providing $6.2 billion of liquidity.
The total homebuilding debt was $2.26 billion as of the fiscal third-quarter end, down from $2.82 billion at the fiscal 2023-end. Homebuilding debt to capital at the fiscal third-quarter end was 7.6%, down from 9.6% at the fiscal 2023-end.
LEN repurchased 3.4 million shares for $519 million in the fiscal third quarter.
<h2>Guidance</h2>
For fourth-quarter fiscal 2024, the company expects deliveries within 22,500-23,000 homes, depicting a fall from 23,795 homes delivered in the year-ago period. The company expects the ASP of the delivered units to be nearly $425,000, down from an ASP of $441,000 reported a year ago.
The gross margin on home sales is expected to be flat year over year. SG&amp;A expenses, as a percentage of home sales, are likely to be in the range of 6.7-6.8% for the quarter. In the prior year, gross margin was 24.2%, and SG&amp;A was 6.6%.
New orders are likely to be within 19,000-19,300 units, up from 17,366 homes reported a year ago.
Financial Services operating earnings are expected to be around $140 million, down from $168 million a year ago.
<h2>LEN&#39;s Zacks Rank &amp; Stocks to Consider</h2>
Lennar currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the same space are M/I Homes, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mho#NYSE">MHO</a>), Meritage Homes Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mth#NYSE">MTH</a>)&nbsp;and PulteGroup, Inc.&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/phm#NYSE">PHM</a>). Each stock presently carries a Zacks Rank #2 (Buy).
M/I Homes is a Columbus, OH-based homebuilder that engages in the construction and sale of single-family residential homes.
MHO&#39;s EPS estimates for 2024 have increased to $19.76 from $19.58 over the past 30 days. The company&#39;s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average being 4.8%. MHO&#39;s earnings are expected to rise 21.9% year over year in 2024.
Meritage Homes is a Scottsdale, AZ-based company that designs and builds single-family attached and detached homes.
MTH&#39;s EPS estimates for 2024 have increased to $21.09 from $20.33 over the past 60 days. The company&#39;s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 21.5%. MTH&#39;s earnings are expected to rise 5.8% year over year in 2024.
PulteGroup is an Atlanta, GA-based homebuilder engaged in homebuilding and financial services businesses.
PHM&#39;s EPS estimates for 2024 have increased to $13.36 from $12.85 over the past 60 days. The company&#39;s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 10%. PHM&#39;s earnings are expected to rise 14% year over year in 2024.
<a href="https://www.zacks.com/stock/news/2339343/lennar-q3-earnings-revenues-beat-stock-down-on-tepid-q4-view?cid=CS-BENZ-FT-analyst_blog|earnings_article-2339343">To read this article on Zacks.com click here.</a>

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Meritage Homes Third Quarter 2024 Earnings Conference Call and Webcast Scheduled for October 30, 2024

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Meritage Homes Announces Quarterly Cash Dividend and $250M Increase to Share Repurchase Authorization

Meritage Homes Announces Two-for-One Stock Split

Meritage Homes Fourth Quarter 2024 Earnings Conference Call and Webcast Scheduled for January 30, 2025

Financing

Meritage Homes Gives $3.3 Million In 2024 To Support Communities Nationwide

Meritage Homes Appoints Geisha Williams to its Board of Directors

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