Earlier this week Berkshire Hathaway CEO and billionaire Warren Buffet offered a positive indicator on the economy by investing nearly $4 billion into the housing market. At a basic level, the news provides hope that a housing markets recovery is close on the horizon. This would be good news for the housing market and the economy as a whole.
One of the reasons he cited for making this investment is that young adults and college graduates will be looking to finally move out of their parents’ house and into a place of their own. Couples have delayed moving in together to avoid additional costs as they save, and now with new homes entering the market and mortgage rates at historic lows, the time may be here to reverse the trend.
Business Section: Investment Ideas
Along with the increased savings rate, Buffett’s investment seems to make sense. Homebuilder stocks have been rallying as of late and his investment suggests they have more upside to price in.
Do you think Buffett’s bullish approach is warranted? To help you follow the trend, and identify some of the immediate beneficiaries, we list below the US home builder stocks trading on the American markets:
1. DR Horton Inc. (DHI, Earnings, Analysts, Financials): Operates as a homebuilding company in the United States. Market cap at $4.98B, most recent closing price at $15.65.
2. Meritage Homes Corporation (MTH, Earnings, Analysts, Financials): Engages in designing and building single-family attached and detached homes in the southern and western United States. Market cap at $862.31M, most recent closing price at $26.33.
3. Toll Brothers Inc. (TOL, Earnings, Analysts, Financials): Engages in designing, building, marketing, and arranging finance for single-family detached and attached homes in luxury residential communities in the United States. Market cap at $4.23B, most recent closing price at $25.28.
4. Lennar Corp. (LEN, Earnings, Analysts, Financials): Operates as a home builder and provider of financial services in the United States. Market cap at $4.83B, most recent closing price at $25.55.
5. KB Home (KBH, Earnings, Analysts, Financials): Operates as a homebuilding and financial services company in the United States. Market cap at $592.9M, most recent closing price at $7.69.
6. MDC Holdings Inc. (MDC, Earnings, Analysts, Financials): Engages in homebuilding and financial services businesses in the United States. Market cap at $1.33B, most recent closing price at $27.69.
7. NVR Inc. (NVR, Earnings, Analysts, Financials): Operates as a homebuilder in the United States. Market cap at $4.B, most recent closing price at $789.92.
8. PulteGroup, Inc. (PMH, Earnings, Analysts, Financials): Engages in homebuilding and financial services businesses primarily in the United States. Market cap at $3.4B, most recent closing price at $8.85.
9. Ryland Group Inc. (RYL, Earnings, Analysts, Financials): Operates as a home building and mortgage-finance company in the United States. Market cap at $964.91M, most recent closing price at $21.63.
10. Standard Pacific Corp. (SPF, Earnings, Analysts, Financials): Operates as a diversified builder of single-family attached and detached homes in the United States. Market cap at $1.02B, most recent closing price at $5.09.
Written by Ryan Horch
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Analyze These Ideas: Getting Started
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Dig Deeper: Access Company Snapshots, Charts, Filings
- DR Horton Inc. (DHI, Chart, Download SEC Filings)
- Meritage Homes Corporation (MTH, Chart, Download SEC Filings)
- Toll Brothers Inc. (TOL, Chart, Download SEC Filings)
- Lennar Corp. (LEN, Chart, Download SEC Filings)
- KB Home (KBH, Chart, Download SEC Filings)
- MDC Holdings Inc. (MDC, Chart, Download SEC Filings)
- NVR Inc. (NVR, Chart, Download SEC Filings)
- PulteGroup, Inc. (PMH, Chart, Download SEC Filings)
- Ryland Group Inc. (RYL, Chart, Download SEC Filings)
- Standard Pacific Corp. (SPF, Chart, Download SEC Filings)
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