Meritage Homes

Meritage is a long-term play in the home construction business. The company has grown its core earnings by 16% compounded annually over the past two decades. The firm increased its core earnings margin year-over-year (YoY) in each of the past three years and from 6% in 2016 to 8% in the trailing-twelve-month period (TTM). With the ongoing shortage in the home-business market, a prolonged upside potential appears to be valid.