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.
The Zacks Analyst Blog Highlights: PulteGroup, Meritage Homes, Lennar, M.D.C. and D.R. Horton
Read MoreHide Full Article
For Immediate Release
Chicago, IL – March 10, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: PulteGroup Inc. (PHM - Free Report) , Meritage Homes Corp. (MTH - Free Report) , Lennar Corp. (LEN - Free Report) , M.D.C. Holdings Inc. (MDC - Free Report) and D.R. Horton, Inc. (DHI - Free Report) .
Here are highlights from Monday’s Analyst Blog:
Can Home Builders Continue to Thrive Amid Coronavirus Threat?
Wall Street has been grappling with the coronavirus-induced volatility since the last week of February. While almost all industries have been bearing the brunt of this turmoil, one industry — the home builders — has kept on growing. A stable U.S. economy and record low market interest rate, which resulted in sharp decline in mortgage rate, primary catalysts driving the industry.
Housing Market on Strong Footing
While the broader market has been volatile amid mounting global panic over the economic impact of the coronavirus outbreak, housing is expected to remain shielded. Presently, the economic backdrop for U.S. housing is favorable as declining interest/mortgage rates, low unemployment and increasing wages are somewhat offsetting the headwinds. Moreover, the increasing shift of millennials from their parental homes is driving demand for new homes. (Read More: What Fed's Hasty Rate Cut Means for Housing Amid Corona Scare)
Per the latest report by the Department of Commerce, spending on private construction increased 1.5% to $1.023 trillion in December. Spending on home construction climbed 2.1%, reflecting the biggest gain since August. The gain was driven by a 2.7% rise in single-family home constructions. Nonresidential construction was up 0.8% buoyed by strong shopping centers and religious center constructions.
Record-Low Mortgage Rates
The U.S. housing market saw an uptick in the second half of 2019, courtesy of the Federal Reserve’s three consecutive interest rates cuts from July to September. With interest rates low, mortgage rates remain low, helping consumers to borrow more easily.
Meanwhile, on Mar 3, the Fed reduced the benchmark lending rate by 50 basis points in order to support the longest economic expansion, which was under the threat of coronavirus-led global economic slowdown. However, investors continue to aggressively shift their funds from equities to safe-haven U.S. government bonds.
Consequently, bond prices skyrocketed and yields plunged. On Mar 5, the yield on the 10-Year US Treasury Note plummeted to 0.924% after declining to its all-time low of 0.902%. The benchmark sovereign bond recorded its 11th straight losing-streak.
Notably, the yield on 10-Year US Treasury Note is closely linked with the mortgage rate. Mortgage News Daily’s survey showed that 30-year fixed-rate mortgages declined to 3.13%, on average from the November 2018 peak of 4.94% — the lowest rate in eight years.
Moreover, a few market experts are of the opinion that the latest rate cut may help the U.S. economy somewhat by boosting the housing market. Moody’s Analytics Chief Economist Mark Zandi said that the rate cut is expected to aid the domestic economy, in part by boosting the housing market and helping businesses that require to finance their operations in the short term. Notably, the housing market constitutes 3.1% of the U.S. GDP.
Major Gainers
Although, the extent of the virus impact is subject to capability of U.S. home builders to substitute products from China with supplies from domestic or international vendors, several builders have adequate resources to adjust their supply-chain systems. Consequently, share prices of several home builders are still in the positive territory while the broad-market S&P 500 index is in the red with a loss of 6.4%.
Some of the attractive stocks are PulteGroup Inc., Meritage Homes Corp., Lennar Corp., M.D.C. Holdings Inc. and D.R. Horton, Inc.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
The Zacks Analyst Blog Highlights: PulteGroup, Meritage Homes, Lennar, M.D.C. and D.R. Horton
For Immediate Release
Chicago, IL – March 10, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: PulteGroup Inc. (PHM - Free Report) , Meritage Homes Corp. (MTH - Free Report) , Lennar Corp. (LEN - Free Report) , M.D.C. Holdings Inc. (MDC - Free Report) and D.R. Horton, Inc. (DHI - Free Report) .
Here are highlights from Monday’s Analyst Blog:
Can Home Builders Continue to Thrive Amid Coronavirus Threat?
Wall Street has been grappling with the coronavirus-induced volatility since the last week of February. While almost all industries have been bearing the brunt of this turmoil, one industry — the home builders — has kept on growing. A stable U.S. economy and record low market interest rate, which resulted in sharp decline in mortgage rate, primary catalysts driving the industry.
Housing Market on Strong Footing
While the broader market has been volatile amid mounting global panic over the economic impact of the coronavirus outbreak, housing is expected to remain shielded. Presently, the economic backdrop for U.S. housing is favorable as declining interest/mortgage rates, low unemployment and increasing wages are somewhat offsetting the headwinds. Moreover, the increasing shift of millennials from their parental homes is driving demand for new homes. (Read More: What Fed's Hasty Rate Cut Means for Housing Amid Corona Scare)
Per the latest report by the Department of Commerce, spending on private construction increased 1.5% to $1.023 trillion in December. Spending on home construction climbed 2.1%, reflecting the biggest gain since August. The gain was driven by a 2.7% rise in single-family home constructions. Nonresidential construction was up 0.8% buoyed by strong shopping centers and religious center constructions.
Record-Low Mortgage Rates
The U.S. housing market saw an uptick in the second half of 2019, courtesy of the Federal Reserve’s three consecutive interest rates cuts from July to September. With interest rates low, mortgage rates remain low, helping consumers to borrow more easily.
Meanwhile, on Mar 3, the Fed reduced the benchmark lending rate by 50 basis points in order to support the longest economic expansion, which was under the threat of coronavirus-led global economic slowdown. However, investors continue to aggressively shift their funds from equities to safe-haven U.S. government bonds.
Consequently, bond prices skyrocketed and yields plunged. On Mar 5, the yield on the 10-Year US Treasury Note plummeted to 0.924% after declining to its all-time low of 0.902%. The benchmark sovereign bond recorded its 11th straight losing-streak.
Notably, the yield on 10-Year US Treasury Note is closely linked with the mortgage rate. Mortgage News Daily’s survey showed that 30-year fixed-rate mortgages declined to 3.13%, on average from the November 2018 peak of 4.94% — the lowest rate in eight years.
Moreover, a few market experts are of the opinion that the latest rate cut may help the U.S. economy somewhat by boosting the housing market. Moody’s Analytics Chief Economist Mark Zandi said that the rate cut is expected to aid the domestic economy, in part by boosting the housing market and helping businesses that require to finance their operations in the short term. Notably, the housing market constitutes 3.1% of the U.S. GDP.
Major Gainers
Although, the extent of the virus impact is subject to capability of U.S. home builders to substitute products from China with supplies from domestic or international vendors, several builders have adequate resources to adjust their supply-chain systems. Consequently, share prices of several home builders are still in the positive territory while the broad-market S&P 500 index is in the red with a loss of 6.4%.
Some of the attractive stocks are PulteGroup Inc., Meritage Homes Corp., Lennar Corp., M.D.C. Holdings Inc. and D.R. Horton, Inc.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.