(Article by Becca Lipman.List compiled by Eben Esterhuizen, CFA. Institutional data sourced from Fidelity, all other data sourced from Finviz.)
Struggling homeowners take note: The Obama administration will soon release a new initiative to rescue the housing market.
Details are uncertain but analysts speculate the initiative will help borrowers to refinance their loans in order to take advantage of low mortgage rates. Such a move would make mortgage payments more affordable for cash-strapped homeowners and ease the damage of the foreclosure crisis.
While hopes are high that Obama’s program can ease the strain of foreclosure for all parties involved, CNN reminds readers that Washington has already tried and failed to remedy the foreclosure crisis since its onset in late 2006.
Efforts included 2009's Home Affordable Modification Program (HAMP) and Second Lien Modification Program (2MP). In 2010 Washington released the Home Affordable Foreclosure Alternatives (HAFA), Principal Reduction Alternative (PRA), Home Affordable Unemployment Program (HAUP), FHA Short Refinance, and Emergency Homeowner's Loan Program (EHLP). These programs were largely unsuccessful.
Is there a chance Obama's new program will fair any better than its predecessors?
To help you monitor the housing industry and the effects of Obama's new plan, we list housing stocks below that have experienced significant levels of institutional buying.
Hedge funds appear to feel confident in these names, do you?
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1. KB Home (KBH): Operates as a homebuilding and financial services company in the United States. Net institutional purchases in the current quarter at 5.8M shares, which represents about 8.88% of the company's float of 65.35M shares.
2. PulteGroup, Inc. (PHM): Engages in homebuilding and financial services businesses primarily in the United States. Net institutional purchases in the current quarter at 14.9M shares, which represents about 4.43% of the company's float of 336.34M shares.
3. Standard Pacific Corp. (SPF): Operates as a diversified builder of single-family attached and detached homes in the United States. Net institutional purchases in the current quarter at 4.7M shares, which represents about 4.47% of the company's float of 105.24M shares.
4. Owens Corning (OC): Provides composite and building materials systems worldwide. Net institutional purchases in the current quarter at 9.1M shares, which represents about 8.58% of the company's float of 106.09M shares.
5. The Sherwin-Williams Company (SHW): Engages in the development, manufacture, distribution, and sale of paints, coatings, and related products primarily in North and South America, the Caribbean region, Europe, and Asia. Net institutional purchases in the current quarter at 4.7M shares, which represents about 5.35% of the company's float of 87.93M shares.
6. Trex Co. Inc. (TREX): Distributes wood/plastic composite products primarily for residential and commercial decking and railing applications in the United States. Net institutional purchases in the current quarter at 631.4K shares, which represents about 4.89% of the company's float of 12.92M shares.
7. US Concrete Inc. (USCR): Engages in the production and sale of ready-mixed concrete, precast concrete products, and concrete-related products for use in commercial, residential, and public works construction projects in the United States. Net institutional purchases in the current quarter at 1.2M shares, which represents about 14.81% of the company's float of 8.10M shares. The company's stock has been in all kinds of trouble recently, and it's currently trading below short- and long-term moving averages.
8. United States Lime & Minerals, Inc. (USLM): Engages in the manufacture and sale of lime and limestone products in the United States. Net institutional purchases in the current quarter at 157.6K shares, which represents about 6.76% of the company's float of 2.33M shares.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.