The stock of Meritage Homes Corporation (NYSE:MTH) is now priced at $76.12 and the shares are 2.52 points up or 3.42% higher compared to its previous closing price of $73.6. The stock had 386235 contracts set over the past session. MTH shares’ daily volume is compared to its average trading volume at 512206 shares. However, it has a float of 36.85 million and although its performance was -0.43% over the week, it’s one to watch. Analysts have given the MTH stock a yearly average price target of $69 per share. It means the stock’s downside potential is -9.35% with the MTH share price recently placing at $73.2 to $76.425. However, some brokerage firms have priced the stock below the average, including one that has called $55.

In the last trading session, Meritage Homes Corporation (NYSE:MTH) dropped by -$0.33 over the week and gained $3.86 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $79.26. The stock recorded its established 52-week high on 06/08/20.

Since 03/18/20, the stock has traded to a low of $25.24 at 201.58%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 1.74. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.

Looking at current readings, Meritage Homes Corporation’s two-week RSI is 58.95. This suggests that the stock is neutral at the moment and that MTH shares’ price movement remains stable. The stochastic readings are equally revealing at 57.68% meaning the MTH share price is currently in neutral territory.

The technical chart shows that the MTH stock will likely settle at between $77.3 and $78.47 per share. However, if the stock dips below $74.07, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $72.02.

Currently, the stock is trading in the red of MACD, with a reading of -0.48. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.

Analysts at JP Morgan raised their recommendation for MTH from Neutral to Overweight in June 11 review. Evercore ISI analysts downgraded their recommendation of the stock from Outperform to In-line while keeping its target price at $77 in a flash note released to investors on June 05. Credit Suisse analysts see the stock as Outperform when the analysts initiated the share price coverage on May 28, placing it at $81.

The average rating for the MTH equity is 2.75 and is currently gathering a bullish momentum. Of 8 analysts tracking Meritage Homes Corporation polled by Reuters, 4 rated MTH as a hold. The remaining 4 analysts were split evenly. However, the split wasn’t equal as a majority (3) rated it as a buy or strong buy. 1 analyst advised investors against buying the stock or to sell if they own any of the stock.

Elsewhere, the MTH stock price is 13.01X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands at 10below the group’s average of 10.5. Meritage Homes Corporation has its P/E ratio at 1.4, which means that the stock is currently trading at a discount relative to the 1.6 industry average.

Zacks Consensus Estimate forecasts that the current-quarter revenues for Meritage Homes Corporation (NYSE:MTH) will decrease by about -6.35%, which will see them reach $847.56 million. The company’s full-year revenues are, however, expected to diminish by about -5.48%, down from $3650 million to $3450 million. MTH’s expected adjusted earnings should surge almost 7.63% to end up at $1.41 per share, while for the fiscal year, analysts project the company’s earnings to drop by about -7.03% to record $6.08/share.

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