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Meritage Homes has the Lowest P/E Ratio in the Homebuilding Industry (MTH, PHM, MHO, DHI, LEN)

By Amy Schwartz

Below are the three companies in the Homebuilding industry with the lowest price to earnings (P/E) ratios. P/E is an important valuation tool when comparing companies in the same industry. A higher P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E ratio.

Meritage Homes ranks lowest with a a P/E ratio of 10.86. Pulte Homes is next with a a P/E ratio of 11.25. M/I Homes ranks third lowest with a a P/E ratio of 11.26.

DR Horton follows with a a P/E ratio of 12.96, and Lennar rounds out the bottom five with a a P/E ratio of 13.90.

SmarTrend recommended that subscribers consider buying shares of Lennar on January 13th, 2017 as our technology indicated a new Uptrend was in progress when shares hit $44.43. Since that recommendation, shares of Lennar have risen 18.4%. We continue to monitor Lennar for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: lowest p/e ratio meritage homes Pulte Homes m/i homes DR Horton Lennar

Ticker(s): MTH PHM MHO DHI LEN