Goldman Sachs updates conviction lists: Adds Johnson & Johnson and Axis Bank By Investing.com
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 01 2025
0mins
Source: Investing.com
Goldman Sachs Conviction List Update: Goldman Sachs has updated its Conviction Lists for the U.S. and Asia-Pacific, adding Johnson & Johnson and Houlihan Lokey in the U.S., while Axis Bank, Horizon Robotics, and NextDC were added in APAC, reflecting their growth potential and resilience.
Company Insights: Johnson & Johnson is noted for its strong balance sheet and promising drug pipeline, while Houlihan Lokey benefits from economic downturn protection; Axis Bank is expected to improve profitability, and Horizon Robotics and NextDC are recognized for their significant revenue growth forecasts.
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Analyst Views on MTH
Wall Street analysts forecast MTH stock price to rise
6 Analyst Rating
2 Buy
4 Hold
0 Sell
Moderate Buy
Current: 65.240
Low
74.00
Averages
85.50
High
104.00
Current: 65.240
Low
74.00
Averages
85.50
High
104.00
About MTH
Meritage Homes Corporation is a designer and builder of single-family attached and detached homes. The Company’s segments include homebuilding and financial services. The homebuilding segment is engaged in the business of acquiring and developing land, constructing homes, marketing and selling those homes and providing warranty and customer services. It has operations in three regions: West, Central and East, which are comprised of 12 states: Arizona, California, Colorado, Utah, Texas, Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, and Tennessee. These three regions are its principal homebuilding segments. The financial services segment offers title and escrow, mortgage, and insurance services. Its financial services operations also provide mortgage services to its homebuyers through an unconsolidated joint venture. The Company’s homebuilding activities are conducted under the name of Meritage Homes in each of its homebuilding markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Dream Finders Homes Appoints New COO to Drive Growth
- Executive Appointment: Dream Finders Homes has appointed Clint Szubinski as Chief Operating Officer, leveraging over 20 years of experience in the homebuilding industry to direct the company's strategic vision and operational performance, which is expected to drive ongoing growth.
- Leadership Background: Szubinski's previous role as Executive Vice President and COO at Meritage Homes involved overseeing enterprise-wide operations and contributing to national growth strategies, providing valuable experience for DFH's expansion efforts.
- Market Expansion Strategy: His appointment reflects Dream Finders Homes' continued investment in senior leadership talent as the company aims to enhance its competitiveness in the Southeast, Mid-Atlantic, and Midwest markets through its asset-light model and commitment to quality and affordability.
- Company Vision: Szubinski expressed excitement about joining Dream Finders Homes, highlighting the company's strong culture and clear vision for growth, and looks forward to collaborating closely with division leaders to deliver exceptional homes and communities to buyers nationwide, further solidifying the company's market position.
See More
Meritage Homes Provides Mortgage-Free Home to Veterans
- Mortgage-Free Home Donation: Meritage Homes is providing a brand-new, mortgage-free home to a military family in Gulfport, Mississippi, showcasing its commitment to veterans, having donated 22 such homes since 2013, which underscores the company's dedication to social responsibility.
- Community Development: The new home, located in Meritage's Hidden Trails community, spans 2,000 square feet and features four bedrooms, three bathrooms, and a two-car garage, offering convenient access to transportation and amenities, thereby enhancing the community's appeal and value.
- Independence Day Celebration: In celebration of America's 250th Independence Day, Meritage Homes partners with Operation Homefront to honor military personnel and their families, which elevates the brand's image and strengthens customer loyalty.
- Future Outlook: This donation not only provides a stable living environment for the military family but also sets a positive example for Meritage Homes in terms of social responsibility, likely attracting more customers interested in the company's sustainable development and community engagement efforts.
See More
Meritage Homes Declares Quarterly Dividend of $0.48
- Quarterly Dividend Announcement: Meritage Homes has declared a quarterly dividend of $0.48 per share, consistent with previous distributions, indicating stable cash flow and profitability, which is likely to attract more income-focused investors.
- Dividend Yield: The forward yield of 3.01% reflects the company's attractiveness in the current market environment, potentially increasing demand for its stock among yield-seeking investors.
- Shareholder Record Date: The dividend will be payable on June 30, with a record date of June 16 and an ex-dividend date also on June 16, providing investors with a clear timeline to participate in the dividend distribution.
- Future Delivery Expectations: Meritage projects Q2 2026 closings to range between 3,650 and 3,900 homes, indicating the company's ability to maintain strong market performance amid higher-than-anticipated incentives.
See More
Meritage Announces First Quarter 2026 Results; Improving Margins and Positive Outlook
Financial Performance: The first quarter of 2026 shows rising margins for the company, indicating improved profitability.
Market Outlook: The overall outlook for the company is becoming more positive, suggesting potential growth and stability in the near future.
See More
Meritage Homes Q1 2026 Earnings Call Insights
- Sales Order Decline: Meritage Homes reported Q1 sales orders of 3,664 units, a 5% decrease from the previous year, indicating that consumer confidence has been negatively impacted in a challenging market environment, necessitating higher incentives to capture near-term demand.
- Record Community Count: As of March 31, the number of active communities reached 345, setting a new company record, with expectations for community count growth of 5% to 10% in 2026, which will drive overall sales volume and revenue increases.
- Increased Shareholder Returns: Despite macroeconomic pressures, Meritage repurchased $130 million worth of common shares in Q1 and raised its dividend by 12% to $0.48 per share, demonstrating a strong commitment to shareholder value and proactive capital management.
- Margin Pressure Intensifies: The gross margin for Q1 was 17.5%, down 400 basis points from the prior year, primarily due to increased incentives and rising land costs, with expectations that this structural pressure will continue to impact profitability in 2026.
See More
Meritage Homes Q1 Earnings Miss Expectations
- Earnings Shortfall: Meritage Homes reported a Q1 non-GAAP EPS of $0.86, missing expectations by $0.12, indicating challenges in profitability amid current market conditions, which may affect investor confidence.
- Significant Revenue Decline: The company generated $1.11 billion in revenue for Q1, a 17.2% year-over-year decrease that fell short by $60 million, primarily due to lower home closing volumes and average sales prices, reflecting a weak demand environment.
- Decreased Orders: Orders for 3,664 homes in Q1 decreased by 5% year-over-year, driven by an 18% drop in average absorption pace, despite a 17% increase in average community count, highlighting intensified market competition and insufficient customer demand.
- Guidance Revision: The company has updated its guidance for full-year 2026 home closing volume and revenue to be within 5% of 2025 results based on current market conditions, indicating uncertainty and a cautious outlook for future performance.
See More
Dream Finders Homes Appoints New COO to Drive Growth
- Executive Appointment: Dream Finders Homes has appointed Clint Szubinski as Chief Operating Officer, leveraging over 20 years of experience in the homebuilding industry to direct the company's strategic vision and operational performance, which is expected to drive ongoing growth.
- Leadership Background: Szubinski's previous role as Executive Vice President and COO at Meritage Homes involved overseeing enterprise-wide operations and contributing to national growth strategies, providing valuable experience for DFH's expansion efforts.
- Market Expansion Strategy: His appointment reflects Dream Finders Homes' continued investment in senior leadership talent as the company aims to enhance its competitiveness in the Southeast, Mid-Atlantic, and Midwest markets through its asset-light model and commitment to quality and affordability.
- Company Vision: Szubinski expressed excitement about joining Dream Finders Homes, highlighting the company's strong culture and clear vision for growth, and looks forward to collaborating closely with division leaders to deliver exceptional homes and communities to buyers nationwide, further solidifying the company's market position.
See More
Meritage Homes Provides Mortgage-Free Home to Veterans
- Mortgage-Free Home Donation: Meritage Homes is providing a brand-new, mortgage-free home to a military family in Gulfport, Mississippi, showcasing its commitment to veterans, having donated 22 such homes since 2013, which underscores the company's dedication to social responsibility.
- Community Development: The new home, located in Meritage's Hidden Trails community, spans 2,000 square feet and features four bedrooms, three bathrooms, and a two-car garage, offering convenient access to transportation and amenities, thereby enhancing the community's appeal and value.
- Independence Day Celebration: In celebration of America's 250th Independence Day, Meritage Homes partners with Operation Homefront to honor military personnel and their families, which elevates the brand's image and strengthens customer loyalty.
- Future Outlook: This donation not only provides a stable living environment for the military family but also sets a positive example for Meritage Homes in terms of social responsibility, likely attracting more customers interested in the company's sustainable development and community engagement efforts.
See More
Meritage Homes Declares Quarterly Dividend of $0.48
- Quarterly Dividend Announcement: Meritage Homes has declared a quarterly dividend of $0.48 per share, consistent with previous distributions, indicating stable cash flow and profitability, which is likely to attract more income-focused investors.
- Dividend Yield: The forward yield of 3.01% reflects the company's attractiveness in the current market environment, potentially increasing demand for its stock among yield-seeking investors.
- Shareholder Record Date: The dividend will be payable on June 30, with a record date of June 16 and an ex-dividend date also on June 16, providing investors with a clear timeline to participate in the dividend distribution.
- Future Delivery Expectations: Meritage projects Q2 2026 closings to range between 3,650 and 3,900 homes, indicating the company's ability to maintain strong market performance amid higher-than-anticipated incentives.
See More
Meritage Announces First Quarter 2026 Results; Improving Margins and Positive Outlook
Financial Performance: The first quarter of 2026 shows rising margins for the company, indicating improved profitability.
Market Outlook: The overall outlook for the company is becoming more positive, suggesting potential growth and stability in the near future.
See More
Meritage Homes Q1 2026 Earnings Call Insights
- Sales Order Decline: Meritage Homes reported Q1 sales orders of 3,664 units, a 5% decrease from the previous year, indicating that consumer confidence has been negatively impacted in a challenging market environment, necessitating higher incentives to capture near-term demand.
- Record Community Count: As of March 31, the number of active communities reached 345, setting a new company record, with expectations for community count growth of 5% to 10% in 2026, which will drive overall sales volume and revenue increases.
- Increased Shareholder Returns: Despite macroeconomic pressures, Meritage repurchased $130 million worth of common shares in Q1 and raised its dividend by 12% to $0.48 per share, demonstrating a strong commitment to shareholder value and proactive capital management.
- Margin Pressure Intensifies: The gross margin for Q1 was 17.5%, down 400 basis points from the prior year, primarily due to increased incentives and rising land costs, with expectations that this structural pressure will continue to impact profitability in 2026.
See More
Meritage Homes Q1 Earnings Miss Expectations
- Earnings Shortfall: Meritage Homes reported a Q1 non-GAAP EPS of $0.86, missing expectations by $0.12, indicating challenges in profitability amid current market conditions, which may affect investor confidence.
- Significant Revenue Decline: The company generated $1.11 billion in revenue for Q1, a 17.2% year-over-year decrease that fell short by $60 million, primarily due to lower home closing volumes and average sales prices, reflecting a weak demand environment.
- Decreased Orders: Orders for 3,664 homes in Q1 decreased by 5% year-over-year, driven by an 18% drop in average absorption pace, despite a 17% increase in average community count, highlighting intensified market competition and insufficient customer demand.
- Guidance Revision: The company has updated its guidance for full-year 2026 home closing volume and revenue to be within 5% of 2025 results based on current market conditions, indicating uncertainty and a cautious outlook for future performance.
See More
