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Beazer Homes USA, Inc. (NYSE:BZH) reported the company’s fiscal Q3 results on the 1st of August in post-market hours, sending the stock down -13% the following day. While the Q3 financials came in as expected, the
Beazer Homes: A Cautiously Optimistic Year Ahead
Summary
- Beazer Homes USA, Inc.'s Q3 results met expectations, finally showing improving revenues year-on-year, but still showing a weakening gross margin.
- The implied Q4 outlook was significantly lowered, but I believe that the lowering was already anticipated.
- The short-term macroeconomic outlook stands cloudy, but falling interest rates should aid Beazer Homes' demand in the midterm, as the company sees a good FY2025 ahead.
- Beazer Homes stock remains undervalued on a discounted cash flow model basis, as well as compared to its relative P/B.
I am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced securities by understanding the drivers behind a company's financials, and ultimately, most often revealed by a DCF model valuation. This methodology doesn't limit an investor into rigid traditional value, dividend, or growth investing, but rather accounts for all of a stock's prospects to determine the risk-to-reward.
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