Meritage Homes Corp (NYSE:MTH) is among the best homebuilder stocks to buy according to hedge funds. On March 4, Truist Securities initiated coverage on Meritage Homes Corp (NYSE:MTH) stock with a Buy rating and a price target of $90.
For this bullish view on Meritage Homes, the market research firm cited the homebuilder’s spec-only approach to business as a key factor. Notably, Meritage Homes doesn’t offer customized options to home buyers but builds everything to spec. This approach has a cost-savings benefit, according to Truist.
According to the firm, the Meritage Homes stock is a good deal for investors seeking exposure to the lower-end of the home price spectrum.
Separately, on February 19, Meritage Homes Corporation (NYSE:MTH) announced that its Board of Directors approved a quarterly dividend of $0.48 per share, marking a 12% increase from last year’s $0.43. The dividend will be paid on March 31, 2026, to shareholders of record as of March 17, 2026.
In its Q4 2025 earnings report, Meritage Homes posted adjusted EPS of $1.67, topping the consensus estimate of $1.53. However, revenue of $1.41 billion missed the consensus projection of $1.49 billion. The company said it operated in a challenging environment during the quarter. It was a period marked by a 7% drop in home closings and a 5% decline in the average selling price on closings.
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Meritage Homes Corp (NYSE: MTH) is among the top five homebuilders in the US. The company targets entry-level and first move-up home markets. It focuses on offering energy efficient and affordable homes to consumers. Meritage says it has delivered more than 210,000 homes in the course of its 40-year history.
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