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Posted by
Two Blokes Jul 29 -
Filed in
Stock
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2 views
I maintain a Hold rating on Meritage Homes due to weak demand, deep margin compression, and unsustainable reliance on buyer incentives. Earnings and margins declined sharply in 2Q25, with net income down 37% and gross margin pressured by increased use of incentives. Management's $500 million cut to FY25 land spend signals caution, likely limiting future community growth and volume recovery.
