Zacks Research Forecasts Weaker Earnings for Meritage Homes

Meritage Homes Corporation (NYSE:MTH) – Research analysts at Zacks Research cut their Q1 2026 EPS estimates for shares of Meritage Homes in a note issued to investors on Wednesday, February 11th. Zacks Research analyst Team now anticipates that the construction company will post earnings of $1.15 per share for the quarter, down from their prior forecast of $1.29. 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’ Q2 2026 earnings at $1.77 EPS, Q3 2026 earnings at $1.60 EPS, Q4 2026 earnings at $1.67 EPS, FY2026 earnings at $6.19 EPS, Q1 2027 earnings at $1.33 EPS, Q2 2027 earnings at $1.99 EPS and Q4 2027 earnings at $1.97 EPS.

A number of other analysts also recently weighed in on MTH. Wall Street Zen downgraded Meritage Homes from a “hold” rating to a “sell” rating in a research report on Sunday, January 11th. UBS Group set a $95.00 price target on Meritage Homes in a research note on Friday, January 30th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Meritage Homes in a research report on Monday, December 29th. JPMorgan Chase & Co. raised their target price on shares of Meritage Homes from $60.00 to $69.00 and gave the company a “neutral” rating in a report on Tuesday, November 4th. Finally, Keefe, Bruyette & Woods dropped their target price on shares of Meritage Homes from $78.00 to $76.00 and set a “market perform” rating for the company in a research report on Tuesday, February 3rd. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $83.63.

Meritage Homes Trading Down 0.7%

Shares of NYSE:MTH opened at $77.96 on Thursday. The business’s 50 day simple moving average is $71.25 and its 200 day simple moving average is $72.04. Meritage Homes has a 1 year low of $59.27 and a 1 year high of $84.74. The company has a debt-to-equity ratio of 0.35, a current ratio of 2.10 and a quick ratio of 1.95. The company has a market capitalization of $5.49 billion, a P/E ratio of 12.34, a P/E/G ratio of 1.37 and a beta of 1.48.

Meritage Homes (NYSE:MTH) last announced its earnings results on Wednesday, January 28th. The construction company reported $1.67 EPS for the quarter, topping the consensus estimate of $1.55 by $0.12. Meritage Homes had a net margin of 7.73% and a return on equity of 9.28%. The company had revenue of $1.44 billion for the quarter, compared to analysts’ expectations of $1.51 billion. During the same period last year, the firm earned $4.72 earnings per share. The business’s revenue for the quarter was down 11.9% on a year-over-year basis.

Meritage Homes Dividend Announcement

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

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Salomon & Ludwin LLC grew its holdings in shares of Meritage Homes by 63.9% during 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 last quarter. Larson Financial Group LLC lifted its stake in Meritage Homes by 265.5% in the 3rd quarter. Larson Financial Group LLC now owns 402 shares of the construction company’s stock valued at $29,000 after purchasing an additional 292 shares during the last quarter. Atlantic Union Bankshares Corp acquired a new stake in Meritage Homes in the second quarter valued at approximately $33,000. Brown Lisle Cummings Inc. bought a new stake in shares of Meritage Homes during the fourth quarter worth $39,000. Finally, EverSource Wealth Advisors LLC increased its holdings in shares of Meritage Homes by 194.9% during the second quarter. EverSource Wealth Advisors LLC now owns 699 shares of the construction company’s stock worth $47,000 after buying an additional 462 shares in the last quarter. Institutional investors own 98.44% of the company’s stock.

Meritage Homes News Roundup

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

• Neutral Sentiment: Mithril/“MTH” exploration update is unrelated to Meritage (different ticker on ASX/TSXV). This press release is not material to NYSE:MTH investors. Mithril Provides Exploration Update
• Negative Sentiment: Zacks Research cut multiple near‑term and FY estimates and kept a “Strong Sell” rating on MTH — notable revisions include Q1 2026 to $1.15 (from $1.29), Q2 2026 to $1.77 (from $1.85), Q3 2026 to $1.60 (from $1.71), Q4 2026 to $1.67 (from $1.80), FY2026 to $6.19 (from $6.65), and cuts into FY2027 quarters (Q1 2027 to $1.33, Q2 2027 to $1.99, Q4 2027 to $1.97). Zacks’ view is substantially below the consensus full‑year EPS of $9.44, signaling lower growth/profitability expectations and creating downward pressure on the stock.
• Negative Sentiment: Seeking Alpha ran a bearish analysis titled “Meritage Homes Corporation: Demand Is Still The Problem,” highlighting weak order trends and demand risks in the housing market — narratives like this amplify investor concern about future revenue, cancellations, backlog trends and margin sustainability. Meritage Homes Corporation: Demand Is Still The Problem

Meritage Homes Company Profile

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.