Merit Homes Corporation (NYSE: MTH ) is one of them The best homebuilder stocks to buy, according to hedge funds. On March 4, Truist Securities initiated coverage on Meritage Homes Corporation (NYSE:MTH) stock with a Buy rating and a $90 price target.
For its bullish outlook on Meritage Homes, the market research firm cited the homebuilder’s unique approach to business as a key factor. Notably, Meritage Homes does not offer traditional options to home buyers but makes everything special. According to the Trust, this approach has the advantage of cost savings.
According to the company, Meritage Homes stock is a good deal for investors looking for 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. Dividends will be paid to shareholders of record on March 31, 2026 through 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 consensus estimates of $1.49 billion. The company said it operated in a challenging environment during the quarter. It was a period marked by a 7% decline in home closings and a 5% decline in the average sales price at foreclosures.
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Merit Homes Corporation (NYSE: MTH) is one of the top five home builders in the United States. The company targets the entry level and first mover home markets. It focuses on offering consumers energy efficient and affordable homes. Meritage says it has delivered more than 210,000 homes over its 40-year history.
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Read more: 40 Most Popular Stocks Among Hedge Funds Going into 2026 and 12 Best Stocks to Buy and Hold for the Next 2 Years
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