The value of Meritage Homes Corporation (MTH) has increased by nearly 30% this year. The company is presently operating in a strong economic environment, which should exist for several more quarters. Financial data for the first quarter was released last week, which was a growth driver for Meritage Homes.
Earnings for Meritage Homes increased 88% year over year in the first quarter. With US interest rates close to 0% and unabated housing demand, the company is taking advantage of a favourable market environment. During the last quarter, the company sold 2,890 homes, 25% more than the previous year. Additionally, there are more than 5,200 properties available for sale, a 47% increase YoY. Meritage Homes is favourable to increase revenue if the momentum in the housing market continues another three or four years.
As the pandemic continues, consumer preferences in the United States have changed somewhat. Some began to choose large houses for their families to isolate themselves from others. Many Millennials, who are now buying their first home, are also active in the real estate market. There is a wide selection of Meritage Homes solutions that provide all the essential comfort at a relatively low price. Additionally, the company continues to buy plots, which allows it to create a solid foundation for future growth and meet current demand.
Meritage Homes Corporation (MTH) stock closed at $106.39 in the last trading session, down -0.57%. The stock’s price ranged from $104.56 to $108.25. A total of 0.53 million shares were traded, which was above its daily average of 0.49 million shares over the past 100 days. During the past five days, MTH’s shares have gained 13.24%, while in the last month, they have gained 15.74%. Moreover, the company is currently trading at a price to earnings ratio of 8.43 and a price to book ratio of 1.70. Furthermore, the price-to-cash flow ratio stood at 7.62.