
LGI Homes (LGIH) Stock Forecast & Price Target
LGI Homes (LGIH) Analyst Ratings
Bulls say
LGI Homes Inc. has shown a significant improvement in net margins, rising from a low of 1.8% in F1Q25 to 8.7% in 2Q25, indicating a positive trend in profitability. The potential reduction in discounting and incentives by competitors could further enhance LGI's market position, particularly benefiting entry-level builders. Additionally, favorable factors such as job growth and increased consumer confidence are expected to drive demand for LGI Homes' offerings, supporting a positive outlook for the company's financial future.
Bears say
The analysis indicates a negative outlook on LGI Homes's stock primarily due to declining unit closings that fell below estimates, with a projected F4Q25 closing estimate of only 1,108 homes and a reduced absorption pace of 2.6 closings per month. Year-over-year comparisons show that LGI's F3Q25 unit closings were notably lower than the Refinitiv estimate of 1,200 homes, alongside a significant 41% decrease in absorption pace compared to the same quarter in the previous year. Moreover, increased competition within Texas has led to weakened net margins in LGI's Central segment, diverging from historical averages and further exacerbating the unfavorable financial metrics.
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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