Meritage Corporation (MTH · NYSE)

Meritage Homes (MTH) is contending with a shrinking top line — revenue fell 13.8% year over year to $5.39B TTM and earnings dropped 32.8% — while its backlog has declined at a 27.6% average annual rate over the past two years. The stock sits at $63.85, down 14.1% over three months and 24.5% below its 52-week high, and analysts have turned cautious: Argus cut its target to $61 and Evercore trimmed to $65 while maintaining a Hold. Q2 offered a mixed picture, with an EPS beat ($1.42 vs. $1.30 consensus) and sequential revenue improvement to $1.47B, though operating income of $184.0M still trails the $120.1M-plus quarters of late 2025. Balance-sheet strength remains a bright spot — $807.3M in cash, an 11.04 current ratio, and $183.9M in quarterly free cash flow — but leverage at 4.3x debt/EBITDA and a 6.4% ROE underscore the cyclical pressure on returns.