
LGI Homes (LGIH) Stock Forecast & Price Target
LGI Homes (LGIH) Analyst Ratings
Bulls say
LGI Homes Inc has demonstrated a notable improvement in net margins, rising from a low of 1.8% in F1Q25 to 8.7% in 2Q25, suggesting a potential bottoming of net margins and an upward trend in profitability. The outlook for the company could be further bolstered by industry dynamics, as indications from a major competitor regarding reduced discounting and incentives may enhance pricing power for LGI and its peers in the entry-level home market. Additionally, ongoing job growth and increased consumer confidence are identified as key demand catalysts for LGI Homes, contributing to a favorable environment for the company's growth prospects.
Bears say
LGI Homes is experiencing sequential declines in unit closings across the second and third quarters of fiscal 2025, resulting in a reduced closing estimate for the fourth quarter to 1,108 homes, with a decline in the absorption pace to 2.6 closings per month from 2.8. The company’s F3Q25 unit closings fell short of the Refinitiv estimate of 1,200 homes, with an absorption pace that was 41% lower year-over-year compared to the previous year's performance. Additionally, increased competition in Texas is impacting the Central segment, leading to weaker net margins compared to historical averages, which raises concern about the company’s profitability prospects.
This aggregate rating is based on analysts' research of LGI Homes and is not a guaranteed prediction by Public.com or investment advice.
LGI Homes (LGIH) Analyst Forecast & Price Prediction
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