Meritage Homes Experiences MACD Death Cross, Bollinger Bands Narrowing on 15min Chart.

Meritage Homes's 15-minute chart has recently exhibited a MACD Death Cross and Bollinger Bands Narrowing pattern, as of 09/29/2025 at 10:00. This technical indicator suggests that the stock price may continue to decline, with a potential decrease in the magnitude of price fluctuations.

Meritage Homes (MTH) has recently shown signs of potential market distress, with its 15-minute chart exhibiting a MACD Death Cross and Bollinger Bands Narrowing pattern as of September 29, 2025, at 10:00 3 Reasons to Avoid MTH and 1 Stock to Buy Instead^[1]. These technical indicators suggest a potential decline in the stock price, with a possible decrease in price volatility.

Analysts have also expressed caution about Meritage Homes, citing several reasons. The company's backlog, which measures the value of outstanding orders, has been declining, averaging a 36.5% year-on-year drop over the past two years 3 Reasons to Avoid MTH and 1 Stock to Buy Instead^[1]. This indicates that the company is not winning new orders and may face increasing competition or market saturation. Additionally, Meritage Homes's free cash flow margin has been dropping, falling by 6.6 percentage points over the last five years and currently standing at negative 4% 3 Reasons to Avoid MTH and 1 Stock to Buy Instead^[1]. This trend suggests that the company is becoming more capital-intensive. Furthermore, the company's return on invested capital (ROIC) has been declining, indicating fewer profitable growth opportunities 3 Reasons to Avoid MTH and 1 Stock to Buy Instead^[1].

Given these factors, Meritage Homes falls short of our quality standards. The stock trades at 8.2 times forward P/E, making it optically cheap, but the potential downside is significant due to its shaky fundamentals. Investors should exercise caution and consider other investment opportunities.