Homebuilding Shares (XHB) On The Rise

The shares of home building companies were up today as the market waited on quarterly results from Pulte Homes Inc. (NYSE: PHM).

Pulte Homes Inc. shares were up nearly 5%, while the SPDR S&P Homebuilders (NYSE: XHB) exchange traded fund was up nearly 3%.

According to a poll of analysts performed by Thomson Reuters, the average estimate forecasts a loss of 19 cents per share for Pulte Homes Inc. However, the estimates are wide ranging, with analysts expecting everything from a loss of 80 cents per share to a profit of 72 cents per share.

Despite the rising share prices, some analysts cautioned investors.

"Despite recent indications of strength in the entry-level market, we continue to believe that Pulte will underperform," UBS analyst David Goldberg said in a report to clients.

"We continue to believe fundamentals in the housing market are approaching a trough. That said, results in the first half of the year are likely to be inconsistent, with various data points suggesting conditions are better or worse than expected," Goldberg said. "This should ease, however, in the second half of the year, as signs of stabilization --and a gradual recovery -- become more evident."