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Today we issued our list of Top Performing Real Estate Stocks for the Trailing 12 months ending February 1st, 2013. During this time period, the average company on the list increased by 100%. We are impressed with continued great performance in the real estate sector. The performance of the top 10 real estate stocks suggest that even in a difficult economy, there are always opportunities in real estate.

Top Ten Performers:

  • Pulte Homes (PHM): up 159%
  • Hovanian Enterprises (HOV): up 122%
  • Standard Pacific (SPF): up 109%
  • Ryland Group (RYL): up 103%
  • MI Homes (MHO): up 97%
  • MDC Homes (MDC): up 94%
  • KB Home (KBH): up 90%
  • Lennar Corp (LEN): up 88%
  • DR Horton (DHI): up 65%
  • Meritage Homes (MTH): up 64%

1. Pulte Homes up 159%. Pulte Homes, Inc., through its subsidiaries, engages in homebuilding and financial services businesses primarily in the United States. The company's homebuilding business includes the acquisition and development of land primarily for residential purposes within the United States; and the construction of housing on such lands. It offers various home designs, including single-family detached, townhouses, condominiums, and duplexes under the Pulte Homes, Del Webb, and Centex brand names.

Analysis:

With a price to sales ratio of only 1.57 we believe that PHM has some room to grow. Quarterly earnings growth of 325% and quarterly revenue growth of %24 percent reflect expanding real estate markets and rising U.S. home prices, which have had their largest annual gains since August 2006.

Valuation Measures
Market Cap (intraday):7.55B
Enterprise Value (Feb 7, 2013):8.79B
Trailing P/E (ttm, intraday):36.46
Forward P/E (fye Dec 31, 2014):14.80
PEG Ratio (5 yr expected):3.55
Price/Sales (ttm):1.57
Price/Book (mrq):3.45
Enterprise Value/Revenue :1.82
Enterprise Value/EBITDA :41.40
Balance Sheet
Total Cash (mrq):1.40B
Total Cash Per Share (mrq):3.66
Total Debt (mrq):2.65B
Total Debt/Equity (mrq):120.95
Current Ratio (mrq):3.15
Book Value Per Share (mrq):5.71

Bullish Short Term Indicators

20 - 50 Day MACD OscillatorBuy

Bullish Medium Term Indicators

50 Day Moving Average vs PriceBuy
20 - 100 Day MACD OscillatorBuy

Bullish Long Term Indicators

100 Day Moving Average vs PriceBuy
50 - 100 Day MACD OscillatorBuy

(click to enlarge)

2. Hovanian Enterprises up 122%. Hovnanian Enterprises, Inc. designs, constructs, markets, and sells residential homes in the United States. It constructs single-family attached and detached homes, attached townhouses and condominiums, and urban infill and active adult homes. The company markets its build homes for first-time buyers, first-time and second-time move-up buyers, luxury buyers, active adult buyers, and empty nesters in 192 communities in 37 markets. It also provides financial services, including originating mortgages from homebuyers and selling such mortgages in the secondary market, as well as title insurance services. The company was founded in 1959 and is headquartered in Red Bank, New Jersey.

Analysis:

Last year was a great one for Hovanian Enterprises. 2012 lead to record revenues and PPS increase of over 120%. The stock pulled back about 15% since January 1st, which we believe is due to poor profit margins. If the company is able to improve profit margins, we believe the stock could see continued growth.

Valuation Measures
Market Cap (intraday):708.77M
Enterprise Value (Feb 7, 2013):2.32B
Trailing P/E (ttm, intraday):N/A
Forward P/E (fye Oct 31, 2014):11.46
PEG Ratio (5 yr expected):53.40
Price/Sales :0.48
Price/Book (mrq):N/A
Enterprise Value/Revenue :1.56
Enterprise Value/EBITDA :23.62
Balance Sheet
Total Cash (mrq):258.32M
Total Cash Per Share (mrq):1.92
Total Debt (mrq):1.73B
Total Debt/Equity (mrq):N/A
Current Ratio (mrq):5.12
Book Value Per Share (mrq):-4.67

Bullish Short Term Indicators

20 - 50 Day MACD OscillatorBuy

Bullish Medium Term Indicators

20 - 100 Day MACD OscillatorBuy

Bullish Long Term Indicators

100 Day Moving Average vs Price

Buy

50 - 100 Day MACD OscillatorBuy

(click to enlarge)

3. Standard Pacific up 109%. Standard Pacific Corp. Standard Pacific, one of the nation's largest homebuilders, has built more than 115,000 homes during its 47-year history. The Company constructs homes within a wide range of price and size targeting a broad range of homebuyers. Standard Pacific operates in many of the largest housing markets in the country with operations in major metropolitan areas in California, Florida, Arizona, the Carolinas, Texas and Colorado.

Analysis:

For the quarter ended Dec. 31 (Q4), Standard Pacific crushed revenue and EPS expectations. They booked over $400 million in revenues a quarterly YOY increase of 43%. Quarterly earnings growth increased over 3,000%. In the coming quarters we expect to see continued growth.

Valuation Measures
Market Cap (intraday)5:1.69B
Enterprise Value (Feb 7, 2013)3:3.02B
Trailing P/E (ttm, intraday):5.52
Forward P/E (fye Dec 31, 2014)1:18.48
PEG Ratio (5 yr expected)1:2.61
Price/Sales :1.37
Price/Book (mrq):1.38
Enterprise Value/Revenue 3:2.40
Enterprise Value/EBITDA 6:35.76
Balance Sheet
Total Cash (mrq):339.91M
Total Cash Per Share (mrq):1.59
Total Debt (mrq):1.63B
Total Debt/Equity (mrq):130.13
Current Ratio (mrq):8.12
Book Value Per Share (mrq):5.89

Bullish Short Term Indicators

20 - 50 Day MACD OscillatorBuy

Bullish Medium Term Indicators

50 Day Moving Average vs PriceBuy
20 - 100 Day MACD OscillatorBuy

Bullish Long Term Indicators

100 Day Moving Average vs PriceBuy
50 - 100 Day MACD OscillatorBuy

(click to enlarge)

4. Ryland Group up 103%. The Ryland Group, Inc. operates as a homebuilder and a mortgage-finance company in the United States. It engages in the design, construction, and sale of homes, as well as provides mortgage, title insurance, escrow, and insurance services. The company offers single-family detached homes; and attached homes, such as townhouse, condominiums, and mid-rise buildings, as well as sells lands and lots. It builds homes for entry-level buyers, as well as for first and second-time move-up buyers. The Ryland Group, Inc. was founded in 1967 and is headquartered in Westlake Village, California.

Analysis:

Ryland group like competitor Hovanian Enterprises has slipped in the last month. We credit this to weak profit margins. We believe the company shows continued room for growth. The main factors for our bullishness are record EPS and impressive growth in net income.

Valuation Measures
Market Cap (intraday)5:1.67B
Enterprise Value (Feb 7, 2013)3:2.30B
Trailing P/E (ttm, intraday):43.99
Forward P/E (fye Dec 31, 2014)1:12.74
PEG Ratio (5 yr expected)1:3.64
Price/Sales :1.31
Price/Book (mrq):3.39
Enterprise Value/Revenue 3:1.76
Enterprise Value/EBITDA 6:26.36
Balance Sheet
Total Cash (mrq):543.71M
Total Cash Per Share (mrq):12.04
Total Debt (mrq):1.13B
Total Debt/Equity (mrq):215.78
Current Ratio (mrq):6.59
Book Value Per Share (mrq):11.16

Bullish Short Term Indicators

20 - 50 Day MACD OscillatorBuy

Bullish Medium Term Indicators

50 Day Moving Average vs PriceBuy
20 - 100 Day MACD OscillatorBuy

Bullish Long Term Indicators

100 Day Moving Average vs PriceBuy
50 - 100 Day MACD OscillatorBuy

(click to enlarge)

5. MI Homes up 97%. M/I Homes, Inc., together with its subsidiaries, primarily operate as a builder of single-family homes in the United States. The company operates in two segments, Homebuilding and Financial Services. The Homebuilding segment designs, constructs, markets, and sells single-family homes, attached townhouses, and condominiums to first-time, move-up, empty-nester, and luxury buyers in the Midwest, Mid-Atlantic, and southern regions. It markets its finished homes through company-employed sales consultants under the M/I Homes, Showcase Homes, and TriStone Homes trade names. This segment also purchases undeveloped land to develop into finished lots for the construction of single-family homes and for sale to others.

Analysis:

In the last week as many home stocks pulled back and consolidated M/I homes saw the largest percentage decrease in share price. The technicals and their inability to build bid support at the $26 range makes us bearish on this stock. We will continue to monitor MI Homes progress but we are not expecting much short term growth.

Valuation Measures
Market Cap (intraday):494.46M
Enterprise Value (Feb 7, 2013):812.47M
Trailing P/E (ttm, intraday):34.25
Forward P/E (fye Dec 31, 2014):18.07
PEG Ratio (5 yr expected):1.29
Price/Sales :0.66
Price/Book (mrq):1.51
Enterprise Value/Revenue :1.07
Enterprise Value/EBITDA :19.65
Balance Sheet
Total Cash (mrq):154.18M
Total Cash Per Share (mrq):7.16
Total Debt (mrq):364.23M
Total Debt/Equity (mrq):108.59
Current Ratio (mrq):6.76
Book Value Per Share (mrq):15.57

Bearish Short Term Indicators

7 Day Average Directional IndicatorSell
10 - 8 Day Moving Average Hilo ChannelSell
20 Day Moving Average vs PriceSell

Bearish Medium Term Indicators

40 Day Commodity Channel IndexSell
50 Day Moving Average vs PriceSell

Bearish Long Term Indicators

100 Day Moving Average vs PriceSell

(click to enlarge)

6. MDC Homes up 94%. M.D.C. Holdings, Inc., through its subsidiaries, engages in homebuilding and financial services businesses in the United States. Its Homebuilding segment engages in the purchase of finished lots for the construction and sale of single-family detached homes to first-time and first-time move-up homebuyers under the Richmond American Homes name. The company's Financial Services and Other segment originates mortgage loans primarily for homebuyers; offers third-party insurance products to homebuyers; and provides title agency services to homebuyers in Colorado, Florida, Maryland, Nevada, and Virginia. This segment also provides insurance coverage on homes sold and for work performed in completed subdivisions; and re-insures allegiant claims. M.D.C. Holdings, Inc. was founded in 1972 and is based in Denver, Colorado.

Analysis:

MDC Holdings has had record EPS and Quarterly revenue growth YOY. Strong earnings growth of over 240%, a low debt-to-equity ratio and analyst expectations of continued quarterly growth make us bullish on MDC.

Valuation Measures
Market Cap (intraday):1.87B
Enterprise Value (Feb 7, 2013):2.06B
Trailing P/E (ttm, intraday):30.01
Forward P/E (fye Dec 31, 2014):17.23
PEG Ratio (5 yr expected):4.89
Price/Sales :1.58
Price/Book (mrq):2.15
Enterprise Value/Revenue :1.72
Enterprise Value/EBITDA :46.74
Balance Sheet
Total Cash (mrq):654.82M
Total Cash Per Share (mrq):13.45
Total Debt (mrq):821.17M
Total Debt/Equity (mrq):93.22
Current Ratio (mrq):5.91
Book Value Per Share (mrq):18.09

Bullish Short Term Indicators

20 - 50 Day MACD OscillatorBuy

Bullish Medium Term Indicators

50 Day Moving Average vs PriceBuy
20 - 100 Day MACD OscillatorBuy

Bullish Long Term Indicators

100 Day Moving Average vs PriceBuy

(click to enlarge)

7. KB Home up 90%. KB Home operates as a homebuilding and financial services company in the United States. The company constructs and sells various types of homes, including attached and detached single-family residential homes, townhouses, and condominiums primarily for first-time, move-up, and active adult homebuyers. It also provides title and insurance services to homebuyers. The company delivered 5,812 homes in fiscal 2011. It has operations in Arizona, California, Colorado, Florida, Maryland, Nevada, North Carolina, Texas, and Virginia. The company was formerly known as Kaufman and Broad Home Corporation and changed its name to KB Home in 2001. KB Home was founded in 1957 and is headquartered in Los Angeles, California.

Analysis:

KB Home recognized YOY quarterly revenue growth of %20 and gross profits of $239 million. We are currently bearish on KBH for a few reasons including their weak profit margins and negative YOY quarterly earnings growth.

Valuation Measures
Market Cap (intraday):1.41B
Enterprise Value (Feb 7, 2013):2.62B
Trailing P/E (ttm, intraday):N/A
Forward P/E (fye Nov 30, 2014):20.93
PEG Ratio (5 yr expected):46.18
Price/Sales :0.91
Price/Book (mrq):3.78
Enterprise Value/Revenue :1.68
Enterprise Value/EBITDA :851.50
Balance Sheet
Total Cash (mrq):524.77M
Total Cash Per Share (mrq):6.80
Total Debt (mrq):1.72B
Total Debt/Equity (mrq):457.22
Current Ratio (mrq):6.52
Book Value Per Share (mrq):4.88

Short Term Indicators

7 Day Average Directional IndicatorBuy
10 - 8 Day Moving Average Hilo ChannelSell
20 Day Bollinger BandsHold

Medium Term Indicators

40 Day Commodity Channel Index Hold
50 Day Moving Average vs PriceBuy
20 - 100 Day MACD OscillatorBuy

Long Term Indicators

60 Day Commodity Channel Index Buy
100 Day Moving Average vs Price Buy
50 - 100 Day MACD Oscillator Buy

(click to enlarge)

8. Lennar Corp up 88%. Lennar Corporation, together with its subsidiaries, engages in homebuilding, financial services, and real estate businesses in the United States. Its homebuilding operations include the construction and sale of single-family attached and detached homes; and the purchase, development, and sale of residential land. The company also provides primarily mortgage financing, title insurance and closing services for the buyers of homes and others. In addition, it invests in distressed real estate assets, as well as engages in sourcing, underwriting, pricing, and monetizing real estate and real estate related assets and providing similar services to others in markets across the country.

Analysis:

Lennar Corp has recently consolidated along with most of the industrial goods sector. Despite this, we are still very bullish on the stock. In the last year, the company recognized impressive revenue growth, notable return on equity and remarkable growth in net income.

Valuation Measures
Market Cap (intraday):7.67B
Enterprise Value (Feb 7, 2013):11.60B
Trailing P/E (ttm, intraday):12.83
Forward P/E (fye Nov 30, 2014):18.16
PEG Ratio (5 yr expected):4.24
Price/Sales :1.90
Price/Book (mrq):2.28
Enterprise Value/Revenue :2.83
Enterprise Value/EBITDA :26.07
Balance Sheet
Total Cash (mrq):1.25B
Total Cash Per Share (mrq):6.52
Total Debt (mrq):5.04B
Total Debt/Equity (mrq):125.90
Current Ratio (mrq):5.65
Book Value Per Share (mrq):17.83

Bullish Short Term Indicators

20 - 50 Day MACD OscillatorBuy

Bullish Medium Term Indicators

50 Day Moving Average vs PriceBuy
20 - 100 Day MACD OscillatorBuy

Bullish Long Term Indicators

50 - 100 Day MACD OscillatorBuy
100 Day Moving Average vs PriceBuy

(click to enlarge)

9. DR Horton up 65%. D.R. Horton, Inc. operates as a homebuilding company in the United States. The companies Homebuilding segment engages in the acquisition and development of land, and construction and sale of residential homes in 25 states and 73 markets in the United States primarily under the D.R. Horton, America's Builder name. This segment is also involved in building traditional single-family detached homes; and attached homes, such as town homes, duplexes, triplexes, and condominiums, which share common walls and roofs. Its Financial Services segment engages in originating and selling mortgages, as well as provides title insurance policies, examination, and closing services primarily to the purchasers of its homes. The company markets and sells its homes primarily through independent real estate brokers. D.R. Horton, Inc. was founded in 1978 and is based in Fort Worth, Texas.

Analysis:

Dr Horton has held up very well compared to other companies in its sector. The company beat expectations and announced an earnings increase of 122% DHI is also the largest of the homebulders industry group. We are bullish on DHI and expect continued growth in the next six months.

Valuation Measures
Market Cap (intraday):7.39B
Enterprise Value (Feb 7, 2013):9.48B
Trailing P/E (ttm, intraday):8.23
Forward P/E (fye Sep 30, 2014):15.97
PEG Ratio (5 yr expected):4.74
Price/Sales :1.59
Price/Book (mrq):2.09
Enterprise Value/Revenue :2.01
Enterprise Value/EBITDA :26.86
Balance Sheet
Total Cash (mrq):643.10M
Total Cash Per Share (mrq):2.00
Total Debt (mrq):2.59B
Total Debt/Equity (mrq):71.79
Current Ratio (mrq):7.63
Book Value Per Share (mrq):11.24

Bullish Short Term Indicators

7 Day Average Directional IndicatorBuy
20 Day Moving Average vs PriceBuy
20 - 50 Day MACD OscillatorBuy

Bullish Medium Term Indicators

40 Day Commodity Channel IndexBuy
50 Day Moving Average vs PriceBuy
20 - 100 Day MACD OscillatorBuy

Bullish Long Term Indicators

60 Day Commodity Channel IndexBuy
100 Day Moving Average vs PriceBuy

(click to enlarge)

10. Meritage Homes up 64%. Meritage Homes is the ninth-largest public homebuilder in the United States based on homes closed in 2011. Meritage builds a variety of homes across Southern and Western states to appeal to a wide range of buyers, including first-time, move-up, luxury and active adults. As of June 30, 2012, the company had 151 actively selling communities in 15 metropolitan areas, including Northern California, East Bay/Central Valley and Southern California, Houston, Dallas/Ft. Worth, Austin, San Antonio, Phoenix/Scottsdale, Tucson, Las Vegas, Denver, Orlando, Tampa and Raleigh-Durham. In 2012, Meritage also announced its entry into the Charlotte market.

Analysis:

Meritage Homes recently beat analyst EPS estimates by 21 cents. YOY Quarterly revenue growth for Q4 2012 increased almost 50%, home closing profit increased over 50%, home closings increased 30% and total closing revenues increased 38%. We expect Meritage to continue its rapid growth in the coming months.

Valuation Measures
Market Cap (intraday):1.46B
Enterprise Value (Feb 7, 2013):2.05B
Trailing P/E (ttm, intraday):13.71
Forward P/E (fye Dec 31, 2014):13.57
PEG Ratio (5 yr expected):5.19
Price/Sales :1.26
Price/Book (mrq):2.16
Enterprise Value/Revenue :1.72
Enterprise Value/EBITDA :31.69
Balance Sheet
Total Cash (mrq):170.46M
Total Cash Per Share (mrq):4.79
Total Debt (mrq):722.80M
Total Debt/Equity (mrq):104.12
Current Ratio (mrq):8.56
Book Value Per Share (mrq):19.50

Bullish Short Term Indicators

20 - 50 Day MACD OscillatorBuy

Bullish Medium Term Indicators

20 - 100 Day MACD OscillatorBuy
50 Day Moving Average vs PriceBuy

Bullish Long Term Indicators

100 Day Moving Average vs PriceBuy
50 - 100 Day MACD OscillatorBuy

(click to enlarge)

Source: 10 Top-Performing Real Estate Stocks For The Trailing 12 Months