LGIH - LGI Homes: Risk/Reward Remains Attractive
2024-05-14 09:49:24 ET
Summary
- LGI's Q1 results came in below my expectations, but I don't think the declines represent a structural degradation.
- Looking ahead, their absorption rate should grow throughout the year as evidenced by recent monthly data, concurrently disconfirming Q1's softness.
- With potential margin growth and continued demonstration of community count growth, LGI remains positioned to grow over time.
Introduction
Since I last wrote about LGI Homes (LGIH), the share price has stayed relatively flat in the mid-to-upper-$90/share range and now running at $100. Investors sold LGI off after releasing Q1 2024 earnings, but their share price has recovered since then....
LGI Homes: Risk/Reward Remains Attractive