|Bid||49.82 x 3000|
|Ask||50.15 x 800|
|Day's Range||49.85 - 50.21|
|52 Week Range||33.28 - 50.21|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||11.82%|
|Beta (5Y Monthly)||1.03|
|Expense Ratio (net)||0.42%|
At a time when the rapidly-spreading coronavirus is rattling the global financial markets, we discuss whether investors should consider buying the homebuilder ETFs.
The home construction sector was suffering a broad selloff, following a disappointing earnings report from Beazer Homes USA Inc. and downbeat industry commentary from Caterpillar Inc. . The iShares U.S. Home Construction ETF slumped 2.0%, with 43 of 45 components losing ground, as the S&P 500 fell 1.5%. Beazer's stock plummeted 20%, on track for the biggest one-day drop since Feb. 5, 2016, and for the lowest close since Sept. 11, 2019. The selloff comes one day after the stock closed at the highest level since April 5, 2018. Analyst Jay McCanless at Wedbush downgraded Beazer to neutral from outperform, citing concerns over valuation and the outlook for gross margins. McCanless said fiscal first-quarter gross margins reported late Thursday missed his estimate, and now he's concerned they may stay below forecasts for the rest of the fiscal year. Separately, Caterpillar Chief Executive Jim Umpleby said on the conference call with analysts following the company's fourth-quarter report, that he expected the residential construction business to decline in 2020, given slower end-user demand.
Wall Street extended its decade-long bull run to start 2020, pushing the major indices to record highs on the initial trade deal and Q4 earnings optimism. However, the rally fizzled out last week following the coronavirus outbreak.
The U.S. homebuilding industry continued its strong momentum heading into the New Year given that groundbreakings on new U.S. homes surged to a 13-year high in December.
Homebuilder sector exchange traded funds are building on the improving housing market recovery as U.S. home construction jumped to a 13-year high in December. Over the past year, the SPDR S&P Homebuilders ...
Home construction stocks and homebuilder-related exchange traded funds stood out on Wednesday after Lennar Corp. (NYSE: LEN) beat estimates, despite falling home prices over the last quarter. On Wednesday, ...
Among the newer generation of internet marketplace stocks, Etsy (NASDAQ:ETSY) is one of the more mature names. The company went public almost five years ago and was in business for a decade prior to that.Source: quietbits / Shutterstock.com Despite its tenure, Etsy has fallen behind marketplace rivals such as Shopify (NYSE:SHOP) and share price performance reflects as much. Amid expectations of slowing growth, Etsy stock stumbled to a 7% loss in 2019 while the S&P 500 and other broader benchmarks surged. Shopify more than tripled.Etsy's 2019 performance is disappointing when considering the strength of the U.S. consumer and economy. The company matches buyers and sellers in areas like clothing, jewelry and vintage items. And it collects a fee on those transactions.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe stock even tumbled following a solid third-quarter earnings report, in which the company revealed sales growth of 30% and raised gross merchandise sales (GMS) and revenue guidance. Typically, upbeat guidance should be rewarded by investors. But that wasn't the case for Etsy stock. The negative reaction puts pressure on the fourth-quarter earnings update and 2020 guidance to be spectacular."During the third quarter we launched several transformative initiatives to serve as the building blocks for long-term, sustainable growth," Etsy CEO Josh Silverman said in a statement. "… We are just beginning to see the impact of these initiatives, which we believe further our competitive advantages and will have a more meaningful contribution to our results in 2020 and beyond." Headwinds and OpportunityPerhaps the two biggest hurdles Etsy faces in 2020 are convincing investors last year's GMS and sales growth is somewhat sustainable and prompting market participants to pay up for that growth. That's another way of saying that almost 46 times this year's earnings and 7 times sales, Etsy isn't inexpensive. * 9 Boring Stocks to Buy You Should Never Let Go Of The good news for Etsy is that many of its customers are constantly shopping. Plus, the housing market is strong. The iShares U.S. Home Construction ETF (BATS:ITB) jumped almost 49% last year. And millennials -- a core Etsy demographic -- are entering the home-buying arena in force. The online marketplace operator stands to benefit.While Etsy stock has its critics on Wall Street, it has supporters, too, including RBC Capital analyst Mark Maheny.Maheny likes the 2020 outlook "for the stock given a large, loyal, and growing community of buyers and sellers and multiple growth initiatives, including free shipping, advertising, and product improvements," reports Barron's.The average analyst price target on Etsy is just over $65, but the stock closed barely under $45 on Friday. So something has to give. Either analysts lower their price forecast or the stock starts marching closer to the current consensus target. Bottom Line: Etsy Stock Is UnderappreciatedEtsy isn't as big as some of the aforementioned names and doesn't have the sizzle markets have ascribed to Shopify. But the Brooklyn-based company does have some important factors in its favor. Notably, this isn't some ultra-expensive, nowhere-close-to-profitable internet unicorn.Etsy was actually cash flow positive in the third quarter and ended that period with $856.7 million in cash or cash equivalents. Plus, the company is buying back its own stock, something that mature, financially sound companies do.After repurchasing $2.8 million of its own shares, Etsy may want to consider buying more of its stock before it rallies too much. Another repurchase would serve as an avenue for boosting earnings. Investors may want to follow suit.As of this writing, Todd Shriber did not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks to Buy to Kick Off the New Year * 7 Buyout Targets to Watch For 2020 * 9 Boring Stocks to Buy You Should Never Let Go Of The post Despite Narrow Marketplace Focus, Etsy Stock Has Crafty Potential appeared first on InvestorPlace.
U.S home prices have risen at their fastest past in five months, fueling the ongoing strength in the housing market and homebuilders sector-related exchange traded funds. Year-to-date, the SPDR S&P Homebuilders ...
As there have been winners in many corners of the space, we highlight nine ETFs from different zones that have outperformed so far this year. These are expected to continue outperforming, provided the fundamentals remain intact.
Homebuilder stocks and sector-related ETFs have surged this year, rebounding to their previously record highs, as a return to a low-interest rate environment and rising housing starts helped fuel new home ...
Braving all hurdles including recession fears, trade dispute, Brexit and geopolitical tensions, Wall Street has enjoyed a huge rally this year with all the three major indices hitting record highs lately.