Homebuilding Stocks and ETF’s – Is There Value Here?

There are endless reasons to look at the Homebuilding sector today, namely it is earnings season, NAHB Housing Market Index numbers announced today and tomorrow is the day for Housing Starts (Consensus Starts: 735,000)  and Building Permits (Consensus Permits: 745,000). There are many opinions out there on whether Housing has reached its trough in the US or has it reached its trough in your real estate neighborhood?

Last week, Meritage Homes (MTH) and Beazer Homes (BZH) reported June yr/yr increase in orders of 49% and 28% respectively. In capital market transactions, KBH announced plans to tender for its 2014 and 2015 Senior notes and BZH announced the redemption of its 2017 Senior notes by raising capital in the form of Senior notes due 2018, common shares and tangible equity. This is all very encouraging.

Business Section: Investment Ideas

Before earnings and Housing Data, we looked at the short interest for all the stocks along with their short term and long term technical and fundamental performance. Is this the time to build a portfolio of Housing stocks and ETF’s?

We think it is a good time to take a look at the Homebuilding stocks in the midst of possible economic and fundamental catalysts. Use the chart below to compare two homebuilding ETFs versus the S&P 500.

Below is a list of twelve homebuilding stocks to keep an eye on.

1. Beazer Homes USA Inc. (BZH, Earnings, Analysts, Financials): Designs, builds, and sells single-family and multi-family homes in the United States. Market cap at $213.39M. Short ratio at 2.53. Most recent closing price at $2.85. Weekly Performance at -15.68%. YTD Performance at 14.92%. Beta at 4.33. Total Debt to Equity 6.56. Insider Ownership as a % to Total Float 0.95%.

2. DR Horton Inc. (DHI, Earnings, Analysts, Financials): Operates as a homebuilding company in the United States. Market cap at $5.95B. Short ratio at 4.33. Most recent closing price at $18.9. Weekly Performance at 0.05%. YTD Performance at 50.6%. Beta at 1.05. Total Debt to Equity 0.65. Insider Ownership as a % to Total Float 8.94%.

3. KB Home (KBH, Earnings, Analysts, Financials): Operates as a homebuilding and financial services company in the United States. Market cap at $786.62M, most recent closing price at $10.20. Short ratio at 5.12. Weekly Performance at -3.03%. YTD Performance at 53.6%. Beta at 1.79. Total Debt to Equity 4.28. Insider Ownership as a % to Total Float 0.02%.

4. Lennar Corp. (LEN, Earnings, Analysts, Financials): Operates as a home builder and provider of financial services in the United States. Market cap at $5.87B. Short ratio at 4.73. Most recent closing price at $31.39. Weekly Performance at -0.25%. YTD Performance at 60.48%. Beta at 1.7. Total Debt to Equity 1.28. Insider Ownership as a % to Total Float 3.29%.

5. MDC Holdings Inc. (MDC, Earnings, Analysts, Financials): Engages in homebuilding and financial services businesses in the United States. Market cap at $1.51B. Short ratio at 3.94. Most recent closing price at $31.34. Weekly Performance at -4.31%. YTD Performance at 81.26%. Beta at 1.09. Total Debt to Equity 0.89. Insider Ownership as a % to Total Float 0.61%.

6. M/I Homes, Inc. (MHO, Earnings, Analysts, Financials): Engages in the construction and sale of single-family residential properties. Market cap at $343.65M. Short ratio at 3.68. Most recent closing price at $18.06. Weekly Performance at -1.9%. YTD Performance at 88.12%. Beta at 2.07. Total Debt to Equity 1.06. Insider Ownership as a % to Total Float 0.14%.

7. 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 $1.25B. Short ratio at 4.98. Most recent closing price $35.93. Weekly Performance at 1.55%. YTD Performance at 54.94%. Beta at 1.61. Total Debt to Equity 1.25. Insider Ownership as a % to Total Float 1.66%.

8. NVR Inc. (NVR, Earnings, Analysts, Financials): Operates as a homebuilder in the United States. Market cap at $4.38B. Short ratio at 4.32. Most recent closing price $868. Weekly Performance at 1.17%. YTD Performance at 26.53%. Beta at 0.87. Total Debt to Equity 0. Insider Ownership as a % to Total Float 3.82%.

9. PulteGroup, Inc. (PHM, Earnings, Analysts, Financials): Engages in homebuilding and financial services businesses primarily in the United States. Market cap at $4.21B. Short ratio at 2.96. Most recent closing price at $10.93. Weekly Performance at -1.44%. YTD Performance at 73.22%. Beta at 1.26. Total Debt to Equity 1.62. Insider Ownership as a % to Total Float 8.03%.

10. Ryland Group Inc. (RYL, Earnings, Analysts, Financials): Operates as a home building and mortgage-finance company in the United States. Market cap at $1.16B. Short ratio at 4.24. Most recent closing price at $25.82. Weekly Performance at -3.73%. YTD Performance at 64.56%. Beta at 1.24. Total Debt to Equity 1.84. Insider Ownership as a % to Total Float 1.78%.

11. 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 $1.29B. Short ratio at 8.55. Most recent closing price at $6.43. Weekly Performance at -0.92%. YTD Performance at 102.2%. Beta at 2.24. Total Debt to Equity 2.16. Insider Ownership as a % to Total Float 0.98%.

12. 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 $4.98B. Short ratio at 2.71. Most recent closing price at $29.67. Weekly Performance at -1.36%. YTD Performance at 45.3%. Beta at 1.04. Total Debt to Equity 0.74. Insider Ownership as a % to Total Float 6.84%.

Written by Sabina Bhatia

Use Kapitall’s Tools: Looking for ways to analyze this list?

Use this article snapshot as a launch pad (click here for help): Simply click on the links, and use Kapitall’s tab navigation to browse through the data…

Analyze These Ideas: Getting Started

• Read descriptions for all companies mentioned
• Access a performance overview for all stocks in the list
• Compare analyst ratings for the companies mentioned
• Compare analyst ratings to annual returns for stocks mentioned
• Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)

Dig Deeper: Access Company Snapshots, Charts, Filings

• Beazer Homes USA Inc. (BZH, Chart, Download SEC Filings)
• DR Horton Inc. (DHI, Chart, Download SEC Filings)
• KB Home (KBH, Chart, Download SEC Filings)
• Lennar Corp. (LEN, Chart, Download SEC Filings)
• MDC Holdings Inc. (MDC, Chart, Download SEC Filings)
• M/I Homes, Inc. (MHO, Chart, Download SEC Filings)
• Meritage Homes Corporation (MTH, Chart, Download SEC Filings)
• NVR Inc. (NVR, Chart, Download SEC Filings)
• PulteGroup, Inc. (PHM, Chart, Download SEC Filings)
• Ryland Group Inc. (RYL, Chart, Download SEC Filings)
• Standard Pacific Corp. (SPF, Chart, Download SEC Filings)
• Toll Brothers Inc. (TOL, Chart, Download SEC Filings)

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