Not shying away from a hot sector, Sterne Agee calls for over-weighting the homebuilders (XHB)...

|By:, SA News Editor

Not shying away from a hot sector, Sterne Agee calls for over-weighting the homebuilders (XHB) ahead of Q1 earnings. "We believe housing supply is not sufficient to meet demand," says Sterne simply, and inventory in key regions has fallen to levels where builders from the low to high end can all raise prices. Top individual picks: RYL, DHI, MTH.