LGIH Stock Analysis: Buy, Sell, or Hold?
LGIH - LGI Homes, Inc.
$50.11
-0.04 (-0.07%)
▼
BUY
HIGH Confidence
Last Updated: January 30, 2026
Earnings: Feb 17, 2026
16d
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: LGIH shows strong fundamentals and good volume confirmation. Solid entry point despite fair pricing.
✅ BUY SIGNAL: LGIH shows strong fundamentals and good volume confirmation. Solid entry point despite fair pricing.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$95.76
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$59.46
15.7% Margin of Safety
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 11.1x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: LGIH is currently trading at $50.11, which is considered fair relative to its 30-day fair value range of $43.82 to $53.12. The stock's valuation (Forward PE: 11.3) is in line with its historical norms (11.1). At these levels, the market is pricing in 0.7% annual earnings growth.
Technical Outlook: Technically, LGIH is in a downtrend. Immediate support is located at $48.54, while resistance sits at $55.94.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. In the options market, Implied Volatility is low (5th percentile), suggesting options premiums are relatively cheap. This makes it an attractive time for long options strategies if you have a directional bias. Wall Street analysts see significant upside, with an average price target of $67.50 (+34.6%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, LGIH is in a downtrend. Immediate support is located at $48.54, while resistance sits at $55.94.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. In the options market, Implied Volatility is low (5th percentile), suggesting options premiums are relatively cheap. This makes it an attractive time for long options strategies if you have a directional bias. Wall Street analysts see significant upside, with an average price target of $67.50 (+34.6%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
FAIR
Fair Price Range
$43.82 -
$53.12
Company Quality Score
50/100
(HOLD)
Options IV Signal
5th percentile
(LOW)
Volume Confirmation
HIGH
Confidence Score
80.4%
All Signals
- NEUTRAL: Price in fair range
- BULLISH: Options cheap (IV 5th percentile)
- NEUTRAL: Mixed technical signals (40/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 34.6% below Wall St target ($67.50)
- BULLISH: Expecting earnings turnaround to 0.7% growth with -39.2% revenue growth
Fair Price Analysis
30-Day Fair Range
$43.82 -
$53.12
Current vs Fair Value
FAIR
Expected Move (7 Days)
±$4.11
(8.2%)
Support & Resistance Levels
Support Level
$48.54
Resistance Level
$55.94
Current Trend
Downtrend
Fundamental Context
Forward P/E (Next Year Est.)
11.32
Wall Street Target
$67.50
(+34.6%)
Revenue Growth (YoY)
-39.2%
Earnings Growth (YoY)
-71.2%
Profit Margin
5.9%
Valuation Premium vs History
+0.7% premium
PE vs Historical
11.3 vs 11.1
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+0.7%
(market-implied from PE analysis)
1-Year Target
$50.50
(+1%)
2-Year Target
$50.85
(+1%)
3-Year Target
$51.21
(+2%)
3-Yr Target (if PE normalizes)
(PE: 11→11)
PE COMPRESSION
$50.21
(+0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.3, Growth: 34.8%)
$241.90
(+382%)
Base:
(SPY PE: 11.3, Growth: 34.8%)
$122.79
(+145%)
Bear:
(PE: 9.6, Growth: 34.8%)
$104.37
(+108%)
📈
Valuation based on Current Earnings
Trailing PE: 11.04 | Current EPS (TTM): $4.52
Bull Case
$53.78
(+7%)
Analyst growth -2.0%, PE expands to 12.1
Base Case
$48.89
(-2%)
Market implied -2.0%, PE stable at 11.0
Bear Case
$33.92
(-32%)
Severe decline -20.0%, PE contracts to 9.4
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Last updated: January 31, 2026 5:56 AM ET
Data refreshes hourly during market hours. Next update: 6:56 AM
Data refreshes hourly during market hours. Next update: 6:56 AM
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Technical Signals Check
Is LGIH showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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Advanced LGIH Option Strategies
Professional options setups generated by AI based on today's LGIH price and gamma walls.
