"MTH said in some locations, such as Phoenix, it is having success raising prices and has done so 23 times since February in some communities," Wells Fargo analysts wrote in a May 9 report. "Elsewhere, where growth is less robust, the company has less pricing power, highlighting how local pricing is within the industry. MTH would like to slow order growth in some communities, but raising prices can contribute to greater urgency and increased demand."Shares of Meritage Homes hit a 52-week high Wednesday of $29.73. The stock's 52-week low of $13.68 was set on Oct. 4. Meritage Homes' forward P/E is 18.78; the average for home construction companies is 47.28. For comparison, DR Horton (DHI) has a higher forward P/E of 14.8. Eleven of the 17 analysts who cover Meritage Homes rated it hold. Three analysts gave the stock a buy rating and another three rated it sell. The stock has risen 26.74% year to date.
Churchill Downs "CHDN reported a profit for its 1Q, a period which has historically produced a net loss due to the seasonality of live racing," Hilliard Lyons analysts wrote in a May 8 report. "However, an effective diversification strategy begun by management several years ago has lessened the weighted contribution of the racing segment by adding profitable (and growing) income streams from gaming and online wagering. We view the generation of a 1Q profit as a landmark achievement for CHDN and not a one-time anomaly." Shares of Churchill Downs hit a 52-week high of $63.18 on Wednesday. The stock's 52-week low of $36.67 was set on Sept. 30. Churchill Downs' forward P/E is 18.18; the average for gambling companies is 13.96. For comparison, International Game Technology (IGT) has a lower forward P/E of 12.17. All five of the analysts who cover Churchill Downs rated it buy. The stock has risen 20.3% year to date.