On a day with the market blistering higher, it's good to see
some love return to the homebuilders, or homies as I like to call
them. Over the last month or so, this very same group was
being targeted left and right by sellers.
Take Ryland Group (RYL) as the example. The stock was
punished for more than 18% over the one month period that started
May 13 and ended June 13. But since the morning of June
13th the stock is back up about 9.8%. Quite a swing
Now comes today's run higher and there has got to be a sense
of optimism over tomorrow's Permits and Housing Starts numbers.
The Permits are calling for 0.98M with the most recent
report coming in at 1.01M. In 2013, the permits number beat
expectations Feb, March and a recent blowout number in May.
The strength from May should see some form of a revision
and might have been a result of a very weak April.
In terms of housing starts, the market is looking for 0.95M
after posting a 0.85M number last month. Like the permits number,
April was super strong for starts, and May came in below
forecasts. So the idea of April pulling forward some of May
is in there for both numbers.
The last bit of data comes on Thursday as we get existing home
sales. The market is looking for 5.01M and we last saw
4.97M. This number is more of a barometer on the broader
market than the builders themselves and may play more into
general market confidence. A strong number here would be
good news for home goods suppliers like Lumber Liquidators
Could all of that data might be enough to cause a mini rally
in homies like RYL, PHM and HOV?
HOVNANIAN ENTRP (HOV): Free Stock Analysis
LUMBER LIQUIDAT (LL): Free Stock Analysis
PULTE GROUP ONC (PHM): Free Stock Analysis
RYLAND GRP INC (RYL): Free Stock Analysis
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