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Meritage Homes upgraded to Buy as shares trade below book value with strong cost savings and dividend yield.

Analyst Insights
12 Sep 2026
Seeking Alpha
View Source
Bullish
Meritage Homes upgraded to Buy as shares trade below book value with strong cost savings and dividend yield.

Meritage Homes has been upgraded from Neutral to Buy due to its shares trading at 0.8 times book value, providing attractive downside protection. The company shows strong execution in reducing procurement costs, increasing community counts, and shifting focus toward first-time move-up buyers. Additionally, share repurchases below book value and a dividend yield above 3% support medium- to long-term shareholder returns. Despite ongoing macroeconomic challenges, the combination of valuation, operational improvements, and solid liquidity makes the risk-reward profile favorable for investors.

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