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ValuEngine Ratings for Home Builders Show Duress

|Includes: AMREP Corporation (AXR), BRP, BZH, CAA, CHCI, DHI, HOV, KBH, LEN, MDC, MHO, MTH, NVR, RYL, TOL
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March 23, 2011
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Home Sales Take Another Dive

ValuEngine Ratings for Home Builders Show Duress

  We had poor home sales data last week--new housing starts came in at their lowest levels since 1974.  Today, we got even more.  New home sales fell yet again and came in at a new record low.  The US Commerce Department--which has been keeping this data set almost 50 years, reports that on a seasonally-adjusted annual basis the US is on track to sell 250,000 homes.  That is far below the rate of 700,000 considered "healthy."  The prices of the new homes continue to decline as well and have now declined to the levels of December, 2003. 

  Our Chief Market Strategist Richard Suttmeier has been tracking this issue for years now, and called the initial bubble way before most analysts.  He notes in his most recent ValuEngine FDIC Report that without a recovery in housing, we cannot get a real economic recovery.  Banks continue to be weighed down by the massive amounts of mortgage loans of their books and as the wave of foreclosures continues, property values continue to tank, and credit remains tight, housing prices will continue to fall.

 Below, we present the latest data on the Home Builders from our Institutional software package (VEI). 

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Ticker Name Mkt Price Valuation(%) VE Rating Last 12-M Retn(%)
AXR AMREP CORP 9.98     N/A 2 -30.21
BHS BROOKFIELD HOME 12.61     N/A 2 58.42
BZH BEAZER HOMES 4.47 -66.45 3 -2.61
CHCI COMSTOCK HMBLDG 1.41     N/A 1 62.07
COHM ALL AMERICAN GP 0.25 -87.5 2 -82.14
DHI D R HORTON INC 11.85 -18.56 2 -5.8
HOV HOVNANIAN ENTRP 3.74 -74.98 3 -18.16
KBH KB HOME 13.23 -49.59 3 -22.68
LEN LENNAR CORP -A 19.52 -19.42 3 20.87
MDC MDC HLDGS 26.02 -29.57 5 -23.72
MHO M/I HOMES INC 13.97 -28.68 1 -5.67
MTH MERITAGE HOMES 24.33 -11.01 2 13.85
NVR NVR INC 752.51 2.66 3 -0.07
RYL RYLAND GRP INC 16.38 -31.58 2 -29.03
SPF STANDARD PAC 3.75 -61.11 2 -13.59
TOL TOLL BROTHERS 20.49 0.9 3 0.84

  Subscribers can check out the latest valuation, forecast, and ratings figures on the Home Building Industry from our Models HERE.

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Market Indices Data
1:13PM EDT Latest Change YTD
Dow Jones
12,037.10 18.46 3.97%
NASDAQ Composite
2,683.54 -0.33 1.16%
Russell 2000
807.45 -1.21 3.04%
S&P 500
1,292.07 -1.70 2.74%

 

ValuEngine Market Overview
Summary of VE Stock Universe
Stocks Undervalued
43.37%
Stocks Overvalued
56.63%
Stocks Undervalued by 20%
18.2%
Stocks Overvalued by 20%
25.13%
ValuEngine Sector Overview
Sector Change MTD YTD Valuation Last 12-MReturn P/E Ratio
Oils-Energy 0.11% 0.64% 9.94% 23.05% overvalued 45.88% 45.67
Multi-Sector Conglomerates 0.56% 0.11% 1.62% 13.01% overvalued 25.01% 26.48
Aerospace -0.07% 2.29% 13.81% 10.68% overvalued 25.47% 18.43
Basic Materials 0.07% -2.31% -3.08% 10.54% overvalued 49.50% 43.65
Transportation -0.59% 1.43% -1.95% 10.10% overvalued 20.23% 21.21
Utilities -0.17% 0.55% 1.73% 8.03% overvalued 14.27% 21.42
Construction -0.64% 0.64% 0.53% 7.86% overvalued 9.36% 35.49
Consumer Discretionary -0.79% -1.83% 1.26% 6.91% overvalued 14.82% 31.84
Consumer Staples -0.28% -1.41% -1.92% 6.86% overvalued 13.53% 20.63
Industrial Products -0.54% -0.21% 3.06% 6.70% overvalued 24.48% 34.97
Finance -0.42% -1.66% 1.54% 5.86% overvalued 8.48% 26.05
Auto-Tires-Trucks -1.49% -1.87% -6.20% 5.17% overvalued 32.59% 19.11
Business Services -0.48% -0.77% 1.90% 4.85% overvalued 10.77% 48.45
Retail-Wholesale -0.18% 0.45% 1.48% 4.33% overvalued 17.56% 23.85
Computer and Technology -0.37% -1.91% 7.16% 3.76% overvalued 27.38% 39.59
Medical 0.03% 0.30% 8.15% 2.19% undervalued 10.67% 37.20

 

     

 
 
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