Back to top
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
PulteGroup, Inc. (PHM) - free report >>
Toll Brothers Inc. (TOL) - free report >>
KB Home (KBH) - free report >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
PulteGroup, Inc. (PHM) - free report >>
Toll Brothers Inc. (TOL) - free report >>
KB Home (KBH) - free report >>
Image: Bigstock
Should You Buy the Cheap Home Builder Stocks?
Welcome to Episode #115 of the Value Investor Podcast
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service, shares some of her top value investing tips and stock picks.
Stocks have pulled back, hitting some of the growth and momentum names hard. But that doesn’t mean value stocks have been immune from the sell off, far from it.
Banks and the home builders have been hit especially hard, with many of those stocks now in bear market corrections, down 20% or more.
Is it a sign that the economy is about to slow? Or is the selling simply overdone?
How Cheap Are the Home Builders?
1. Toll Brothers (TOL - Free Report) is trading with a forward P/E of 6.6 and a PEG of just 0.4. Yet the shares are down nearly 40% year-to-date.
2. Pulte (PHM - Free Report) has a forward P/E of just 6.1 and a PEG ratio of 0.3. It recently reported earnings which saw revenue up 25% while earnings jumped 74%. But the shares are still down 32% year-to-date.
3. Lennar (LEN - Free Report) has a forward P/E of 8.3 and a PEG of 0.5. Shares have plunged 37% in 2018.
4. KB Home (KBH - Free Report) is one of the more expensive in the group, with a forward P/E of 11.2. But it still has a value PEG of just 0.6. Shares have sunk 40% year-to-date.
5. M/I Homes (MHO - Free Report) is one of the smaller home builders with a market cap of $600 million. But it has a forward P/E of 5.8. Shares are down 38% year-to-date. It’s about to report earnings so you may want to tune in.
What else should you know about the dirt-cheap home builder stocks?
Listen to this week’s podcast to find out.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>