- (0:20) - Growth and Momentum Stocks Pull Back
- (2:35) - Housing Market’s Contribution To GDP
- (8:30) - The Slow Down For The Housing Market
- (12:55) - Tracey’s Top Stock Picks: TOL, PHM, KBH, LEN, DHI, MHO
- (18:15) - Big Takeaways on Beaten Down Housing Stocks
- Podcast@Zacks.com
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>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on PHM - FREE
Get the latest research report on TOL - FREE
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Get the latest research report on MHO - FREE