Meritage Homes' 15min chart sees MACD Death Cross, KDJ Death Cross.

Based on Meritage Homes's 15-minute chart, a technical analysis indicates that the stock's price has triggered a MACD Death Cross and KDJ Death Cross at 14:45 on October 2, 2025. This suggests that the stock price has the potential to continue declining and momentum is shifting towards the downside, with the possibility of further decreases.

Meritage Homes (MTH) has experienced a significant shift in its technical indicators, with both the MACD and KDJ lines triggering a "Death Cross" at 14:45 on October 2, 2025. This technical signal suggests a potential continuation of the stock's downward trend and a shift in momentum towards the downside. Investors should be cautious as this development may indicate further declines in the stock price.

The MACD (Moving Average Convergence Divergence) is a trend-following momentum indicator that shows the relationship between two moving averages of a stock's price. A MACD Death Cross occurs when the MACD line crosses below the signal line, often signaling a potential reversal in the stock's trend. Similarly, the KDJ (Keltner Channels) indicator, which measures volatility, also triggered a "Death Cross" on the same day, suggesting a potential decrease in the stock's price momentum.

Meritage Homes' share price has seen some fluctuations over the past year, with the latest price at $73.52. Despite this, long-term total shareholder returns have remained positive, reflecting the company's resilience in the face of sector uncertainties and market swings. However, the recent technical signals suggest a potential downturn in the stock's performance.

Analysts have noted that Meritage Homes is trading at a noticeable discount to its fair value, with a narrative assigning a fair value of $86.13 per share. This suggests that the stock may be undervalued, presenting a potential opportunity for investors. However, the SWS DCF model paints a different picture, suggesting that Meritage's fair value is significantly lower than its current market price. This challenges the optimism behind the consensus price target and indicates that investors should be cautious.

Investors should closely monitor Meritage Homes' performance and consider the potential risks associated with the recent technical signals. While the stock may present an attractive valuation, the recent MACD and KDJ Death Cross signals suggest a potential downturn in the stock's price momentum. As always, investors should conduct their own research and consider their individual financial situation before making any investment decisions.