BAML likes the homebuilding industry, unleashing Buy ratings on D.R. Horton (DHI), Toll Brothers...

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Paulo Santos Comments (12136)
 
If there's a bubble, it NEEDS to be upgraded.

That said, I too believe homebuilding will continue to recover. It's just that the stocks already discount the next 2 recoveries.
11 Jan, 09:22 AM Reply Like

PSalerno Comments (2008)
 
Recently I bought DHI , it is cheap by PE, PB, PS.
11 Jan, 09:42 AM Reply Like

Paulo Santos Comments (12136)
 
Are you saying TTM P/E? There's something wrong with that, and EV/EBITDA is like 25 times... though DHI doesn't seem the worst of them.
11 Jan, 09:45 AM Reply Like

PSalerno Comments (2008)
 
The 3th quarter earnings of 2.47 are exceptional, probably there is some non-recurring item. It is not a big position, cash flow is weak, but sales are improving. I sold also some short calls spreads on LEN which looks overvalued.
11 Jan, 10:03 AM Reply Like