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You may think that higher interest rates are going to derail the trend of more homes being built. I don’t agree with that idea and I think in the near term that we could see some solid data support my thesis. On March 16 we get new home starts data as well as permits. I like the starts data because it tells me how many people really put down real money to start a home. Just because you buy a permit doesn’t mean you are for sure going to build one.
With this in mind I want to highlight 2 homebuilders and then 2 names that are in the supply chain for the homebuilders.
A Zacks Rank #1 (Strong Buy) means that earnings estimates are moving higher. I can say that with complete confidence and it doesn’t take much to prove it right in the case of Pulte Group (PHM - Free Report) . All I have to do is look at the detailed estimates page (https://www.zacks.com/stock/quote/PHM/detailed-estimates ) and you cam see that 2017 numbers have moved from $2.03 to $2.23 in the last 90 days. The Zacks Consensus Estimate for 2018 has also moved higher in that same time horizon. We call that the magnitude of earnings estimate revisions.
Investors also like to look and see the “surprise” factor, or what I call the earnings history. We see that the most recent quarter was a beat and a 15.52% positive earnings surprise which was posted following an earnings meet.
A Big Price Tag?
Not many investors buy the $1000 stocks, so who is going to buy the $2000 stock? Smart investors, that is who. They know that the price of the stock doesn’t matter as much as what the percentage change is after they buy it. With that said, NVR Inc (NVR - Free Report) looks really good to me with a Zacks Rank #1 (Strong Buy) and a growth style score of “A.”
Some may think that at approximately $1990, this stock is expensive. The truth is that it trades at 15x forward earnings and that is the measure you should use to determine if a stock is pricey or not.
Supply Chain
I want to start my supply chain with a stock that recently held and IPO. Jeld-Wen (JELD - Free Report) priced a strong deal and has seen the stock steadily rise. Right now it is a Zacks Rank #3 (Hold), but I am confident that this stock will be a great long term winner. JELD makes doors and windows, and I know in some new builds that I have seen around where I live they are using JELD windows and doors.
Knock Knock
Masonite (DOOR - Free Report) has a great ticker, but it has a Zacks Rank #1 (Strong Buy) which is why it found its way into this article. The company missed the mark in the most recent quarter but guidance was solid and the stock hasn’t looked back since.
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Housing Stocks Can Be Your Doorway To Profits
You may think that higher interest rates are going to derail the trend of more homes being built. I don’t agree with that idea and I think in the near term that we could see some solid data support my thesis. On March 16 we get new home starts data as well as permits. I like the starts data because it tells me how many people really put down real money to start a home. Just because you buy a permit doesn’t mean you are for sure going to build one.
With this in mind I want to highlight 2 homebuilders and then 2 names that are in the supply chain for the homebuilders.
Follow Brian Bolan on Twitter at @BBOLAN1
Home Is Where the Heart Is
A Zacks Rank #1 (Strong Buy) means that earnings estimates are moving higher. I can say that with complete confidence and it doesn’t take much to prove it right in the case of Pulte Group (PHM - Free Report) . All I have to do is look at the detailed estimates page (https://www.zacks.com/stock/quote/PHM/detailed-estimates ) and you cam see that 2017 numbers have moved from $2.03 to $2.23 in the last 90 days. The Zacks Consensus Estimate for 2018 has also moved higher in that same time horizon. We call that the magnitude of earnings estimate revisions.
Investors also like to look and see the “surprise” factor, or what I call the earnings history. We see that the most recent quarter was a beat and a 15.52% positive earnings surprise which was posted following an earnings meet.
A Big Price Tag?
Not many investors buy the $1000 stocks, so who is going to buy the $2000 stock? Smart investors, that is who. They know that the price of the stock doesn’t matter as much as what the percentage change is after they buy it. With that said, NVR Inc (NVR - Free Report) looks really good to me with a Zacks Rank #1 (Strong Buy) and a growth style score of “A.”
Some may think that at approximately $1990, this stock is expensive. The truth is that it trades at 15x forward earnings and that is the measure you should use to determine if a stock is pricey or not.
Supply Chain
I want to start my supply chain with a stock that recently held and IPO. Jeld-Wen (JELD - Free Report) priced a strong deal and has seen the stock steadily rise. Right now it is a Zacks Rank #3 (Hold), but I am confident that this stock will be a great long term winner. JELD makes doors and windows, and I know in some new builds that I have seen around where I live they are using JELD windows and doors.
Knock Knock
Masonite (DOOR - Free Report) has a great ticker, but it has a Zacks Rank #1 (Strong Buy) which is why it found its way into this article. The company missed the mark in the most recent quarter but guidance was solid and the stock hasn’t looked back since.
Zacks' Best Investment Ideas for Long-Term Profit
Today you can gain access to long-term trades with double and triple-digit profit potential rarely available to the public. Starting now, you can look inside our stocks under $10, home run and value stock portfolios, plus more. Want a peek at this private information? Click here >>