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The Zacks Analyst Blog Highlights M.D.C. Holdings, D.R. Horton, PulteGroup and Dream Finders Homes
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For Immediate Release
Chicago, IL – January 10, 2024 – 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: M.D.C. Holdings, Inc. , D.R. Horton (DHI - Free Report) , PulteGroup (PHM - Free Report) and Dream Finders Homes, Inc. (DFH - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
4 Stocks to Watch as Construction Spending Gathers Pace
The construction sector is making a slow but steady recovery as demand continues to rebound amid easing inflation. Although spending on construction projects came in lower than expectations, it was sharply higher month over month.
The Commerce Department said that spending on construction projects increased as soaring confidence owing to cooling inflation is attracting more investments.
Construction spending rose 0.4% month over month in November, growing for the 11th straight month. However, data for October was revised up, showing that spending on construction projects rose 1.2% instead of the earlier reported 0.6%.
Year over year, construction spending jumped 11.3% in November. Spending on private construction projects rose 0.7% in November on a month-over-month basis.
Homebuilding has been the mainstay of construction spending for months. However, soaring mortgage rates owing to the Federal Reserve's aggressive monetary tightening campaign to curb sky-high inflation saw people shying away from buying homes in 2023.
However, inflation has been declining sharply over the past year. The construction sector is getting a push primarily from the new single-family housing segment, driven by a significant shortage of pre-owned homes in the market.
Spending on residential projects rose 1.1% month over month in November. Outlays on new single-family homes advanced 2.9%.
Moreover, President Joe Biden's administration is contributing to this trend by implementing a policy aimed at bringing semiconductor manufacturing back to the United States. This initiative is playing a role in the construction of new factories.
Also, slowing inflation has seen the Federal Reserve leaving its benchmark policy rate steady in its current range of 5.25-5.50% in its past three FOMC meetings. The 30-year fixed mortgage rate has now fallen below 7%, which bodes well for the homebuilding market.
Our Choices
Given this situation, the housing market is expected to perform well in 2024 as the Fed gears up to cut rates this year. Investing in homebuilding stocks thus appears to be a wise decision. We have narrowed down our search to four such homebuilding stocks. Each of these stocks carries a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here.
M.D.C. Holdings, Inc. is engaged in homebuilding and financial services in the United States. MDC's Homebuilding operations include land acquisition and development, home construction, sales and marketing as well as customer service. The segment delivers single-family detached homes to first-time and move-up buyers under the name Richmond American Homes.
M.D.C. Holdings' expected earnings growth rate for next year is 3.9%. The Zacks Consensus Estimate for current-year earnings has improved 3.2% over the past 60 days. MDC presently has a Zacks Rank #3.
D.R. Horton is one of the leading national homebuilders, primarily engaged in the construction and the sale of single-family houses both in the entry-level and move-up markets. DHI's operations are spread over 91 markets across 29 states in the East, Midwest, Southeast, South Central, Southwest and West regions of the United States. D.R. Horton's houses are sold under the brand names D.R. Horton - America's Builder, Emerald Homes, Express Homes and Freedom Homes.
D.R. Horton's expected earnings growth rate for the current year is 2.5%. The Zacks Consensus Estimate for current-year earnings has improved 5% over the past 60 days. DHI has a Zacks Rank #3.
PulteGroup engages in homebuilding and financial services businesses, primarily in the United States. PHM conducts operations through two primary business segments — Homebuilding (which accounted for 97.2% of 2021 total revenues) and Financial Services (2.8%). PulteGroup's Homebuilding segment offers a wide variety of home designs, including single-family detached, townhouses, condominiums and duplexes at different prices, with a variety of options and amenities to all major customer segments: first-time, move-up and active adult.
PulteGroup's expected earnings growth rate for the current year is 6.4%. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the past 60 days. PHM has a Zacks Rank #2.
Dream Finders Homes, Inc. is a homebuilding company. DFH operates principally in Florida, Texas, North Carolina, South Carolina, Georgia, Colorado, Virginia and Maryland. Dream Finders Homes is based in Jacksonville, FL.
Dream Finders Homes has an expected earnings growth rate of 2.5% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.5% over the last 60 days. DFH presently has a Zacks Rank #2.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights M.D.C. Holdings, D.R. Horton, PulteGroup and Dream Finders Homes
For Immediate Release
Chicago, IL – January 10, 2024 – 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: M.D.C. Holdings, Inc. , D.R. Horton (DHI - Free Report) , PulteGroup (PHM - Free Report) and Dream Finders Homes, Inc. (DFH - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
4 Stocks to Watch as Construction Spending Gathers Pace
The construction sector is making a slow but steady recovery as demand continues to rebound amid easing inflation. Although spending on construction projects came in lower than expectations, it was sharply higher month over month.
The Commerce Department said that spending on construction projects increased as soaring confidence owing to cooling inflation is attracting more investments.
Construction spending rose 0.4% month over month in November, growing for the 11th straight month. However, data for October was revised up, showing that spending on construction projects rose 1.2% instead of the earlier reported 0.6%.
Year over year, construction spending jumped 11.3% in November. Spending on private construction projects rose 0.7% in November on a month-over-month basis.
Homebuilding has been the mainstay of construction spending for months. However, soaring mortgage rates owing to the Federal Reserve's aggressive monetary tightening campaign to curb sky-high inflation saw people shying away from buying homes in 2023.
However, inflation has been declining sharply over the past year. The construction sector is getting a push primarily from the new single-family housing segment, driven by a significant shortage of pre-owned homes in the market.
Spending on residential projects rose 1.1% month over month in November. Outlays on new single-family homes advanced 2.9%.
Moreover, President Joe Biden's administration is contributing to this trend by implementing a policy aimed at bringing semiconductor manufacturing back to the United States. This initiative is playing a role in the construction of new factories.
Also, slowing inflation has seen the Federal Reserve leaving its benchmark policy rate steady in its current range of 5.25-5.50% in its past three FOMC meetings. The 30-year fixed mortgage rate has now fallen below 7%, which bodes well for the homebuilding market.
Our Choices
Given this situation, the housing market is expected to perform well in 2024 as the Fed gears up to cut rates this year. Investing in homebuilding stocks thus appears to be a wise decision. We have narrowed down our search to four such homebuilding stocks. Each of these stocks carries a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here.
M.D.C. Holdings, Inc. is engaged in homebuilding and financial services in the United States. MDC's Homebuilding operations include land acquisition and development, home construction, sales and marketing as well as customer service. The segment delivers single-family detached homes to first-time and move-up buyers under the name Richmond American Homes.
M.D.C. Holdings' expected earnings growth rate for next year is 3.9%. The Zacks Consensus Estimate for current-year earnings has improved 3.2% over the past 60 days. MDC presently has a Zacks Rank #3.
D.R. Horton is one of the leading national homebuilders, primarily engaged in the construction and the sale of single-family houses both in the entry-level and move-up markets. DHI's operations are spread over 91 markets across 29 states in the East, Midwest, Southeast, South Central, Southwest and West regions of the United States. D.R. Horton's houses are sold under the brand names D.R. Horton - America's Builder, Emerald Homes, Express Homes and Freedom Homes.
D.R. Horton's expected earnings growth rate for the current year is 2.5%. The Zacks Consensus Estimate for current-year earnings has improved 5% over the past 60 days. DHI has a Zacks Rank #3.
PulteGroup engages in homebuilding and financial services businesses, primarily in the United States. PHM conducts operations through two primary business segments — Homebuilding (which accounted for 97.2% of 2021 total revenues) and Financial Services (2.8%). PulteGroup's Homebuilding segment offers a wide variety of home designs, including single-family detached, townhouses, condominiums and duplexes at different prices, with a variety of options and amenities to all major customer segments: first-time, move-up and active adult.
PulteGroup's expected earnings growth rate for the current year is 6.4%. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the past 60 days. PHM has a Zacks Rank #2.
Dream Finders Homes, Inc. is a homebuilding company. DFH operates principally in Florida, Texas, North Carolina, South Carolina, Georgia, Colorado, Virginia and Maryland. Dream Finders Homes is based in Jacksonville, FL.
Dream Finders Homes has an expected earnings growth rate of 2.5% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.5% over the last 60 days. DFH presently has a Zacks Rank #2.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.