Why Meritage Homes Shares Popped 15% in September

Shares of homebuilder Meritage Homes (NYSE: MTH) popped 15% in the month of September, according to data provided by S&P Global Market Intelligence. The U.S. housing market has shirked COVID-19 pandemic woes and is on a surge, with home sales in August soaring 4.8% to highs not seen since 2006 and home prices continuing to hit new levels.

Meritage Homes is making the most of the housing boom, as reflected in its latest September announcement.

On Sep. 21, Meritage announced a whopping 73% year-over-year jump in total home orders for July and August combined. Meritage clocked an average absorption of six homes per month per community for the two months, nearly twice the level in the comparable period in 2019. Absorption rate is simply the rate at which homes are sold in a specific community during a specific time period.

Source Fool.com