|Bid||39.98 x 3100|
|Ask||42.00 x 1400|
|Day's Range||40.28 - 41.44|
|52 Week Range||32.39 - 47.00|
|Beta (3Y Monthly)||1.34|
|PE Ratio (TTM)||10.02|
|Earnings Date||Apr 25, 2019|
|Forward Dividend & Yield||0.60 (1.48%)|
|1y Target Est||44.38|
Investing.com - Stocks on Wall Street fell sharply Friday as part of the yield curve inverted, underscoring concerns about a possible recession amid slowing global growth.
A new exchange-traded fund takes a very broad approach to tracking housing stocks, and argues that it is a good way to play the housing crisis.
Investors could make a near-term bet on rate sensitive sectors in the basket form as these will continue to trade smoothly if interest rates remain steady.
Sales of new U.S. homes in the U.S. dropped almost 7% in January, indicating the housing market got off to a slow start in early 2019 amid a partial government shutdown and patches of unusually harsh winter weather. New-home sales declined to a 607,000 annual rate.
D.R. Horton, Inc. , America’s Builder, announced today that the Company will release financial results for its second fiscal quarter ended March 31, 2019 on Thursday, April 25, 2019 before the market opens.
In early 2019, I wrote in an InvestorPlace gallery about why housing stocks would be a good place to park your money in the new year. The thesis was pretty simple. Improving economic and housing sector fundamentals, coupled with oversold conditions, created a golden buying opportunity in overly beaten up housing stocks in early 2019. The conclusion? After a rough 2018, housing stocks were ready for a breakout in 2019.That thesis has played out as expected. After falling more than 25% in 2018, the SPDR S&P Homebuilders ETF(NYSEARCA:XHB) is up nearly 20% so far in 2019, and it's only early March. The catalyst behind this move higher in housing stocks has been economic, housing market and financial market stabilization, which together have reinforced that the fundamentals underlying housing stocks remain favorable.This rally in housing stocks will continue. The fundamentals are only getting better. Housing starts are turning around. Home values are still rising. Mortgage rates are still falling. Meanwhile, home ownership rates remain well below where they have been historically, wages are rising at their fastest pace in a decade, the unemployment rate is at a record low and consumer confidence is back.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 15 Stocks Sitting on Huge Piles of Cash All together, the fundamentals underneath housing stocks remain healthy. Meanwhile, valuations are still largely depressed. As such, the outlook for housing stocks to head higher for the foreseeable future is quite favorable.Source: Shutterstock Housing Stocks to Buy: LGI Homes (LGIH)YTD Gain: 30%The housing stock that has staged the biggest gain this year is LGI Homes (NYSE:LGIH). This U.S. homebuilder has a history of sustained growth and broad exposure to the U.S. housing sector, with operations in 26 markets and 16 states. As such, theory says that as goes the U.S. housing market, so goes LGIH stock.That's exactly what has happened in early 2019. The housing market has materially improved. LGI's numbers have materially improved, too, with the company reporting growth across revenues, home closings, average home sales prices, and gross margins last quarter. Those strong numbers converged on a discounted valuation, and LGIH stock has consequently been on a solid uptrend.This uptrend should continue. U.S. housing market fundamentals are improving. LGIH stock remains cheap (7x forward earnings). That combination should keep LGIH stock on a winning track for the foreseeable future.Source: Squidish via Flickr (modified) KB Home (KBH)YTD Gain: 25%Another homebuilder which has soared in early 2019 as favorable fundamentals have converged on a discounted valuation is KB Home (NYSE:KBH).Heading into the year, KBH stock was trading at 7x forward earnings. Then, the company reported strong fourth quarter numbers that included slight delivery volume growth and roughly stable profit margins. Those are pretty good numbers for a homebuilder trading at 7x forward earnings, so KBH stock has naturally staged a big rally ever since. * The 10 Best Stocks to Buy for the Bull Market's Anniversary This rally will continue. KBH stock is still really cheap, at now 9x forward earnings. The numbers will only get better, as you will probably see selling price growth come back into the picture this year and drive positive revenue growth alongside stable margins. If so, the stock should keep heading higher, given that it still isn't priced for much growth.Source: Shutterstock Lennar (LEN)YTD Gain: 23%Much like KB Home, homebuilder Lennar (NYSE:LEN) is up more than 20% year-to-date thanks to better-than-expected quarterly numbers which, combined with improving macroeconomic data, implied that things aren't as bad as feared in the U.S. housing sector.Specifically, Lennar reported fourth-quarter numbers in early 2019 that weren't great. Growth slowed and margins were under pressure. But growth was still positive, margins didn't fall that much and average selling prices were up. In other words, things were bad, but not that bad. Ever since, macroeconomic data has improved, likewise meaning that Lennar's operations have likely improved, too.If so, LEN stock should stay on an uptrend. The stock is still incredibly cheap at 8x forward earnings, and the numbers have an opportunity to meaningfully improve. That is a winning recipe for a housing stock.Source: -v via Flickr (modified) D.R. Horton (DHI)YTD Gain: 20%The number one homebuilder in America by closings volume -- D.R. Horton (NYSE:DHI) -- naturally has a ton of exposure to the housing market. As such, as housing market fundamentals have improved, DHI stock has bounced back.The fundamentals here are good. DHI is the biggest homebuilder in America and has been for almost two decades. The company has broad geographic and demographic diversity, and controls dominant market share in rapidly expanding metro areas like Phoenix and Dallas Fort Worth. Fiscal 2018 was a great year for the company. There were some concerns that fiscal 2019 would be different. It hasn't been. First-quarter numbers were strong, characterized by healthy growth in closings and orders. * 7 Top Stocks to Buy From Goldman Sachs' Secret Portfolio In other words, DHI's numbers coupled with improving housing market data imply that 2019 will look a lot more like 2018 that anyone had previously expected. That's a good thing for DHI stock, which still trades at a rather cheap 10x forward earnings.Source: Ryan Homes NVR (NVR)YTD Gain: 14%The rally in homebuilder NVR (NYSE:NVR) has been subdued relative to some of its peers thanks to less-than-stellar fourth-quarter numbers.Specifically, in NVR's fourth quarter, everything was down. New order volume dropped 11%. Average sales prices dropped 1%. Backlog dropped 2% on a unit basis and 4% on a dollar basis. By most gauges, the quarter was not very good.But, it was good enough to lift a stock that was trading at just 14x forward earnings. Plus, the fundamentals here are good (big homebuilder with wide geographic and income exposure), and the macroeconomic backdrop has only improved since the fourth quarter of 2019. As such, NVR stock looks good for big rally in the foreseeable future.Source: Shutterstock Toll Brothers (TOL)YTD Gain: 9%Homebuilder Toll Brother (NYSE:TOL) has gained only 9% in a resurgent housing market in 2019, but that could change soon, as the stock looks ready to take a big leg higher.Toll Brothers recently reported first-quarter 2019 numbers, and they were really good. Not only did they blow past consensus estimates, but they broadly confirmed that this company is hugely benefiting from underlying improvements in the U.S. housing market. Thus, investors are now correlating improvements in the U.S. housing market to improvements in TOL's numbers. * 7 Dow Jones Stocks to Buy That's a really good thing. The U.S. housing market should improve throughout 2019. Investors will interpret that as meaning TOL's numbers are getting better, too. With TOL stock trading at just 8x forward earnings, that interpretation should lead to a lot of buying, and all that buying should push TOL stock way higher. Housing Stocks Bouncing Back: PulteGroup (PHM)YTD Gain: 7%Despite rising only 7% in 2019 amid a resurgent housing market, PulteGroup (NYSE:PHM) is actually one of the more attractive homebuilder stocks, supported by healthy long-term fundamentals.PulteGroup is big (the nation's third largest homebuilder), with healthy geographic diversity (25 states and nearly 50 major markets) and broad demographic diversity (30% entry-level buyers, 30% move-up buyers, 15% luxury buyers and 25% active adult buyers). Because of this wide exposure, PulteGroup truly moves with the U.S. economy.In the fourth quarter of 2018, when the U.S. economy was decelerating, PulteGroup still reported increases in closings volume and average sales prices. The economy has only improved since then. So have PulteGroup's numbers. But, PHM stock is up only 7% in 2019, and still trades at just 8x forward earnings. As such, the bull thesis here through EPS growth and multiple expansion looks compelling.As of this writing, Luke Lango was long XHB, LGIH, KBH and TOL. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 of the Best Stocks to Buy Under $10 * 7 Retail Stocks Winning in 2019 and Beyond * The 10 Best Stocks to Buy for the Bull Market's Anniversary Compare Brokers The post 7 Housing Stocks Bouncing Back In 2019 appeared first on InvestorPlace.
Sales of newly-constructed homes were higher in December, but for the full year were barely above 2017’s selling pace.
It could have been worse. Though the S&P 500 ended Monday's trade down 0.39%, at one point in the session the index was off by as much as 1.3% on renewed concerns about the ongoing tariff war with China.Salesforce.com (NYSE:CRM) did the most damage, falling 3.7% after offering disappointing guidance for the year now underway. Eli Lilly (NYSE:LLY) chipped in too, however, losing 1.1% of its value on news that it was cutting the price of its insulin injection, Humalog, by half as a measure to quell criticism of its exorbitant price.Facebook (NASDAQ:FB) was up 3.1% yesterday, though for no reason in particular. Investors are broadly beginning to see a light at the end of the company's tunnel, rekindling the bullishness that took shape following last month's earnings news.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHeaded into Tuesday's trading, the stock charts of CF Industries Holdings (NYSE:CF), D. R. Horton (NYSE:DHI) and PPL (NYSE:PPL) are of the most interest as trading prospects. Here's why. D. R. Horton (DHI)A couple of weeks ago, shares of homebuilder D. R. Horton were featured as a budding breakout candidate. Along with rival homebuilding stocks like PulteGroup (NYSE:PHM), DHI was wiggling out of a downtrend and into an uptrend. There was just a little more work to do. * 7 March Madness Stocks to Consider for the Big Dance There still is. D. R. Horton peeled back shortly after that look. But, between Friday's intraday turnaround and Monday's gain, DHI is back above a key technical line, and the bigger-picture uptrend remains intact. Click to Enlarge • Thanks to the support offered by the purple 50-day moving average line on Friday (highlighted in blue), D. R. Horton has bounced its way back above the white 200-day moving average line.• Zooming out to the weekly chart we can see this rally was ultimately started by a tough horizontal floor around $32.40, plotted with a yellow line.• Even if DHI continues to rally, the daily chart's showing a technical ceiling currently around $42, plotted with a blue dashed line. That resistance has capped all the runup efforts since November. PPL (PPL)PPL has been another name we've had our eye on for a while, as a breakout candidate. With our last look from mid-November, shares of the utility name had punched through a technical ceiling at $31.16. It all came unraveled starting the very next day. For reasons that had little to do with PPL itself, the stock fell to nearly $27 by the middle of December.That loss has been wiped away in the meantime. As of yesterday's close, PPL is testing that November high. And this time, it's got an even better start. Click to Enlarge • The ceiling in question is $32.50, plotted in red on both stock charts.• While it didn't happen or held in December, in February the small dip found a floor at the gray 100-day moving average line (highlighted) to renew the rebound effort.• If the $32.50 area fails to hold back the rally, the next upside target is near $40, where the stock reached highs in 2017. CF Industries (CF)Finally, shares of CF Industries have been largely left out of the market's rally since late December, but they haven't lost ground. Slowly but surely though, CF has worked its way to the brink of a fairly serious breakdown.The good news is, the make-or-break level is quite clear. We're at it as of Monday's close. Click to Enlarge • That line in the sand is at $41.52, plotted with a yellow dashed line on both stocks charts. That level tags all the key lows going back to December, including yesterday's low.• The tide is already bearish, however. The daily volume bars on bearish das have been notably higher for the past month, and the daily chart's accumulation-distribution line as well as the weekly chart's Chaikin line are both back in decided downtrends.• Finally, though subtle (almost to the point of dismissible), the current bearish leg took shape after CF bumped into the gray 100-day and white 200-day moving average lines a couple of weeks ago … the same day the former crossed below the latter. The deck is now completely stacked against a recovery.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Retail Stocks Ready to Break Out * 7 Strong Buy Stocks the Street Loves * 10 Best Stocks to Buy and Hold Forever Compare Brokers The post 3 Big Stock Charts for Tuesday: D. R. Horton, PPL and CF Industries appeared first on InvestorPlace.
A land development group affiliated with homebuilder D.R. Horton Inc. has bought $12.29 million worth of home lots in Sacramento’s South Natomas area.
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). We'll look at D.R. Horton, Inc.'s (NYSE:DHI) P/E ratio and reflectRead More...
Last year, homebuilder ETFs and stocks were stymied by rising interest rates -- among other factors. The Federal Reserve boosted interest rates four times, leading to higher mortgage rates, which chased some would-be homebuyers from the market.Housing affordability concerns in some of the marquee U.S. real estate markets, including California and New York, also plagued homebuilder ETFs in 2018. While the housing affordability issue is far from being reconciled, the good news for investors considering homebuilder ETFs is that the Federal Reserve is likely to slow its pace of rate hikes or not even raise rates at all this year.The Dow Jones U.S. Select Home Construction Index, one of the most widely followed gauges of homebuilder and home improvement equities, is higher by nearly 18% this year. Recent housing data has been encouraging, but analysts are advising a cautious approach.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIndustry analysts are "arguing that the Fed's recent pivot toward dovish interest-rate policy, the tempered pace of the housing recovery since the financial crisis, and demographic factors would combine to help support the housing market in the long term," reports MarketWatch. * 9 Best Stocks to Buy on U.S.-China Trade Optimism In other words, investing mulling homebuilder ETFs have a lot to consider. Here are some of the top homebuilder ETFs that could extend their already sizable gains this year. iShares U.S. Home Construction ETF (ITB) Expense ratio: 0.43% per year, or $43 on a $10,000 investment.The iShares U.S. Home Construction ETF (CBOE:ITB) is the largest homebuilder ETF and tracks the aforementioned Dow Jones U.S. Select Home Construction Index. As such, the $1.18 billion ITB is one of the purest plays among homebuilder ETFs.This is a cap-weighted homebuilder ETF, so it is dominated by the largest stocks in this group. For instance, Lennar Corp. (NYSE:LEN) and D.R. Horton Inc. (NYSE: DHI) combine for over 27% of ITB's weight. The fund's top 10 holdings combine for over 61% of its weight. ITB has some exposure to the retail side of residential real estate, but just to the tune of 13%.Remembering that homebuilder ETFs and stocks notched their worst annual performances in 2018 since 2008 could be interpreted as a sign that the group has more room to run. While ITB is up 17.74% this year, it is still more than 15% below its 52-week high. Invesco Dynamic Building & Construction ETF (PKB)Expense ratio: 0.58% per year, or $58 on a $10,000 investment.The Invesco Dynamic Building & Construction ETF (NYSEARCA:PKB) is an example of a homebuilder ETF with a unique weighting methodology that offers investors the potential to generate returns above those offered by more traditional homebuilder funds.PKB, which is more than 13 years old, follows the Dynamic Building & Construction Intellidex Index. That index "thoroughly evaluates companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value," according to Invesco. * 7 IPOs to Get Excited for in 2019 In general, homebuilder ETFs tilt toward the lower end of the large-cap spectrum and/or include plenty of mid-cap stocks. PKB's 30 holdings have an average market value of $19.76 billion and just 15.44% of the fund's holdings are classified as large caps. Growth investors will like this homebuilder ETF because almost 40% of its holdings are considered growth stocks. VanEck Vectors Retail ETF (RTH)Expense ratio: 0.35% per year, or $35 on a $10,000 investment.As it name implies, the VanEck Vectors Retail ETF (NYSEARCA:RTH) is a retail fund, not a dedicated homebuilder ETF, but this product does have ample exposure to the retail side of residential real estate. Dow component Home Depot (NYSE:HD), the largest home improvement retailer, is the second-largest holding in RTH at nearly 11%.Of the 220 ETFs with exposure to Home Depot, RTH has the largest weight to that stock. Home Depot rival Lowe's (NYSE:LOW) is also a top 10 RTH holding at a weight of 4.63%. Of the 190 ETFs with exposure to Lowe's, RTH has the second-largest weight to that home improvement retailer.Several of RTH's other holdings also sell home improvement products and the ETF is a fine way of getting exposure to Amazon.com (NASDAQ:AMZN) as that stock represents over 20% of RTH's weight. SPDR S&P Homebuilders ETF (XHB)Expense ratio: 0.35% per year, or $35 on a $10,000 investment.Next to ITB, the SPDR S&P Homebuilders ETF (NYSEARCA:XHB) is the most widely followed homebuilder ETF, although the SPDR offering is not as pure as its iShares rival.XHB's equal-weight index provides exposure to the following groups: Building Products, Home Furnishings, Home Improvement Retail, Homefurnishing Retail and Household Appliances, according to State Street. * 7 Consumer Stocks to Buy and Hold for Years Pure homebuilders represent 31.64% of XHB's weight, the fund's second-largest industry weight. This homebuilder ETF also has significant consumer discretionary exposure as household appliances manufacturers, home improvement retailers and home furnishings retailers combine for over 26% of the fund's roster. Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL)Expense ratio: 1.12% per year, of $112 on a $10,000 investment.The Direxion Daily Homebuilders & Supplies Bull 3X Shares (NYSEARCA:NAIL) is the only leveraged homebuilder ETF on the market and this fund looks to deliver triple the daily returns of the aforementioned Dow Jones U.S. Select Home Construction Index.As is the case with any leveraged ETF, NAIL should be used with care by risk-tolerant, short-term traders, not buy-and-hold investors. Good times to consider NAIL include days when housing data is released and earnings days for stocks such as D.R. Horton, Lennar and other marquee homebuilders.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 5 STARS Stocks That Continue to Define the Future * 7 of the Best ETFs to Buy for a Rock-Solid Portfolio * 5 Real Estate Stocks to Buy for Dividend Income Compare Brokers The post Build Something With These 5 Homebuilder ETFs appeared first on InvestorPlace.
The Zacks Analyst Blog Highlights: D.R. Horton, KB Home, Lennar, PulteGroup and Toll Brothers
Construction on new houses sank 11% in December to a more than two-year low, but builders applied for more permits in a sign that a rebound is near. Housing starts tumbled to an annual rate of 1.08 million in the final month of 2018.
Rising home prices, tepid orders and increasing costs may impact Toll Brothers' (TOL) fiscal Q1 earnings. However, robust economy and improving demographics raise hopes.
are now in bull market territory since setting cycle lows between Oct. 22 and Dec. 26. Toll Brothers will put this to a test on Tuesday, Feb. 26, when it reports quarterly results. It's been hard to evaluate the housing market since the government shutdown as the Census Bureau has not been able to release housing starts for December or January.
D.R. Horton (DHI) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.