Market Overview

With Home Builders In Focus, It's Time To Look At What The Experts Are Saying

Share:
Related DHI
Benzinga's Top Initiations
18 Biggest Mid-Day Losers For Tuesday
Homebuilders lag as rates climb, mortgage apps tumble (Seeking Alpha)
Related PHM
Honeywell, PulteGroup And ETFs: Fast Money Picks For November 23
Fast Money Traders Reveal Their Picks At Market Highs
Homebuilders lag as rates climb, mortgage apps tumble (Seeking Alpha)

Home building stocks have had a solid week, with the SPDR S&P Homebuilders (ETF) (NYSEARCA:XHB) up over 4 percent since Tuesday. D.R. Horton, Inc. (NYSE: DHI) was one of the biggest gainers, along with PulteGroup, Inc. (NYSE: PHM) and KB Home (NYSE: KBH).

What's Wall Street's Position?

Using analyst price targets, D.R. Horton may have limited upside.

Here's the latest batch of targets as of November 12:

  • Compass Point: $28 (Buy)           
  • Keefe Bruyette & Woods: $26 (Market Perform)   
  • Credit Suisse: $25 (Neutral)               
  • Sterne Agee: $23 (Neutral)

PulteGroup, a slightly smaller peer -– in terms of market cap -- is up about 6 percent since Tuesday.

Related Link: A Few Ways To Play A Stronger US Housing Market

According to the latest rating issued by Bank of America (Buy), the stock could reach $25 by November 2015. Buckingham Research also sees it rising to $24 by October.

Citigroup, meanwhile, seems more bearish. It set a price target of $20 in late-October when the stock traded around $19 per share.

KB Home is also up in step with the SPDR Homebuilders.

Buckingham Research holds a $21 price target on the stock, which implies upside of more than $4 per share from current prices.

Chatting With An Expert

Speaking to Benzinga, Marketfy Maven JC Parets said he likes "this theme for the first quarter."

He believes the markets will "get absolute price breakouts in ITB and XHB very soon."

Parets added: "Lumber Futures, meanwhile, are also setting up for a monster move higher so it all makes sense."

Posted-In: Bank of America Buckingham Research Citigroup Compass Point Credit SuisseLong Ideas Trading Ideas ETFs

 

Related Articles (DHI + KBH)

View Comments and Join the Discussion!