33.55 +0.12 (0.36%)
After hours: 4:26PM EST
|Bid||33.42 x 900|
|Ask||34.01 x 21500|
|Day's Range||33.37 - 34.30|
|52 Week Range||31.82 - 47.20|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.36|
|Expense Ratio (net)||0.35%|
The U.S. housing market has showed signs of slowing for months and has some economists worried about the broader economy. Jarred Kessler is the CEO of EasyKnock and he wants to help homeowners get ahead before the cycle turns.
Good news for investors with bruised egos right now: there is a bit of holiday cheer buried in the rubble that has become the end of year stock market. One just needs to know where to look.
The average U.S. 30-year mortgage rate has fallen to a two-month low as investors rush to safe haven amid market decline, putting homebuilder ETFs in focus.
After the sharp sell-off on Wednesday, home construction stocks and homebuilder sector-related exchange traded funds were among the few areas of strength Thursday in response to the fall in mortgage rates. On Thursday, the SPDR S&P Homebuilders ETF (XHB) rose 0.9% and iShares U.S. Home Construction ETF (ITB) increased 1.6%. Homebuilders have been under pressure as housing affordability concerns weighed on the sector, specially in recent months as mortgage rates and home prices continued to push higher.
A deadly combination of rising rates and low affordability continues to pound the housing industry, including homebuilders and homebuilder-focused exchange-traded funds (ETFs) alike, such as the Direxion ...
The housing market has been slowing down this year and commentary from one of the country's biggest homebuilders isn't likely to make that sector look any better. Recent history suggests, however, that the economy might be able to withstand a slide from one of its biggest drivers.
Shares of home builders took a broad beating Tuesday, after luxury builder Toll Brothers confirmed investors fears by saying it witnessed the housing market “soften further” in November, especially in California, because of reduced affordability and fewer foreign buyers.
RH (RH) posted its third-quarter earnings results after the market closed on December 3. For the quarter that ended on November 3, the company posted adjusted EPS of $1.73 on revenue of $638.5 million.
Stocks in free fall as economic worries build, and the bond market flashes a big red warning sign. Plus - Apple shares weigh as HSBC gets bearish - we break it down. And - homebuilder Toll Brothers warns skittish buyers are hurting sales - what this means for the all-important housing sector. Plus - Fedex and UPS dropping as Wall Street sees Amazon as a massive threat - it's the call of the day. Catch The Final Round at 3:00 p.m. ET with Jen Rogers and markets correspondent Myles Udland.
Shares of Toll Brothers Inc. dropped 4.6% in premarket trading Tuesday, after the home builder reported fiscal fourth-quarter earnings and revenue that beat expectations but said the housing market slowed further in November, particularly in California. Net income for the quarter to Oct. 31 rose to $311 million, or $2.08 a share, from $191.9 million, or $1.17 a share, in the same period a year ago. The FactSet consensus for earnings per share was $1.84. Sales increased to $2.46 billion from $2.03 billion, above the FactSet consensus of $2.36 billion. Chief Executive Douglas Yearley said that despite a healthy economy, there was a "moderation" in demand during the quarter, as contracts declined 15% in dollars and 13% in units. "In November, we saw the market soften further, which we attribute to the cumulative impact of rising interest rates and the effect on buyer sentiment of well-publicized reports of a housing slowdown," Yearley said. "California has seen the biggest decline." The stock has lost 8.5% over the past three months through Monday, while the SPDR S&P Homebuilders ETF has shed 10% and the S&P 500 has slipped 3.7%.
As of November 28, Lowe’s (LOW) was trading at $93.69, which represents a rise of 2.6% since the announcement of its third-quarter earnings on November 20. Currently, the company is trading 15.4% higher than its 52-week low of $81.16 and 20.4% lower than its 52-week high of $117.70.
In a note published last week, Bank of America Merrill Lynch equity and quantitative strategist Savita Subramanian said, “We believe the peak in equities is likely before the end of 2019.” She expects equities to slow down next year as credit conditions tighten and earnings growth slows. As the Fed keeps tightening monetary conditions, equities (QQQ) (IVV), which are now accustomed to easy money, will find themselves in a difficult situation.
RH (RH) is scheduled to post its third-quarter earnings results after the market closes on December 4. As of November 28, RH is trading at $116.61, a fall of 22.9% since its announcement of its second-quarter earnings results on September 4. In the second quarter, which ended on August 4, RH posted adjusted EPS of $2.05, outperforming analysts’ expectation of $1.74.
Real estate marketplace Zillow Group Inc. said it expects the home-buying market to continue to slow in 2019, as a continued rise in interest rates hurts affordability, particularly in already expensive markets. Zillow said it expects the 30-year fixed mortgage rate will rise to 5.8% by the end of 2019, compared with an average of 4.8% in the Nov. 21 week, according to Freddie Mac. "Some buyers may be pushed back toward the rental market, reversing the recent slowdown in rents," Zillow said. The company said it expects home price growth to slow, from a 5.6% rise since January to 3.8% growth in 2019. "The central storylines in the U.S. housing market didn't change much over the past few years, but a series of emerging trends are setting up a much different narrative for 2019," said Aaron Terrazas, Zillow's senior economist. Separately, the company said "commutes will worsen as the mismatch grows between job creation in urban cores and millennials settling in the suburbs." Zillow's stock has tumbled 30.6% over the past three months, while the SPDR S&P Homebuilers ETF has dropped 13.9% and the Dow Jones Industrial Average has lost 5.1%.
On November 26, Home Depot (HD) was trading at $168.85, a fall of 5.7% since its announcement of its fiscal 2018 third-quarter earnings results on November 13.
Home prices are expected to rise at a slower pace in the years ahead, according to Goldman Sachs. But this doesn't mean a housing bubble is bursting.
Lowe’s Companies (LOW) reported its third-quarter earnings on November 20. During the quarter, Lowe’s outperformed analysts’ EPS expectation of $0.98 and revenue estimate of $17.36 billion. After strategically reassessing the business, Lowe’s management announced that the company intends to end its Mexican retail operations and has been evaluating strategic alternatives.
Berkshire Hathaway, Grubhub, SPDR S&P Homebuilders and Invesco Dynamic Building & Construction highlighted as Zacks Bull and Bear of the Day
Taylor Morrison Home Corp. said Wednesday it is increasing its stock repurchase program by $100 million and extending it a year. The home builder said it had $13 million remaining in its existing buyback program, which was set to expire Dec. 31, 2018. That expiration has been extended to Dec. 31, 2019. Based on Tuesday's stock closing price of $16, the company could buy back up to 7.06 million shares, which would represent about 2.2% of the shares outstanding. The stock, which was still inactive in premarket trade, has tumbled 35% year to date, while the SPDR S&P Homebuilders ETF has dropped 23% and the S&P 500 has slipped 1.2%.
U.S. homebuilding got a boost in October with a rebound in multi-family housing projects, but construction of single-family homes dropped for a second straight month, suggesting ongoing weakness at the hands of rising borrowing costs. The U.S. Commerce Department said on Tuesday that starts for multi-family housing surged 10.3% to a rate of 363,000 units in October. Separately, the Commerce Department said building permits -- an indication of future homebuilding activity -- slipped 0.6% to a rate of 1.263 million units in October.