Meritage Homes (MTH) is a Top-Ranked Momentum Stock: Should You Buy?

Zacks Equity Research
2-min read
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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Is This 1 Momentum Stock a Screaming Buy Right Now?

Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

Meritage Homes (MTH)

Based in Scottsdale, AZ, Meritage Homes Corporation is one of the leading designers and builders of single-family homes.  The company primarily engages in building and selling single-family homes for entry-level, first-time, move-up, luxury and active adult buyers in historically high-growth regions of the United States.

MTH is a Zacks Rank #3 (Hold) stock, with a Momentum Style Score of B and VGM Score of B. Shares are down 0.4% over the past one week and up 4% over the past four weeks. MTH has lost 34.8% in the last one-year period as well. Looking at trading volume, an average of 394,382.41 shares exchanged hands over the last 20 trading days.

Momentum investors also pay close attention to a company's earnings. For MTH, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.03 to $26.45 per share for 2022. MTH boasts an average earnings surprise of 13.6%.

MTH should be on investors' short list because of its impressive earnings fundamentals, a good Zacks Rank, and strong Momentum and VGM Style Scores.


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