Homebuilders Fall On Foreclosure Data (MHO, KBH, PHM, SKY, TOL, BZH, HOV, NVR)

Tickerspy’s Homebuilder Index

HOMEBUILDER INVESTING IDEAS

• Popular long ideas: HOV, PHM, LEN
• Popular short ideas: DHI, PHM, KBH
• Top dividend plays: XIN, KBH, LEN
• Pro favorites: LEN, DHI, TOL

Sign up and track the Homebuilder Index performance

HOMEBUILDER COVERAGE

These firms typically focus on the residential markets, building, homes, condos, and apartment buildings

• Surging New Home Sales Lift Homebuilders Stocks (CVCO, NVR, BHS, BZH, HOV, KBH)
• Homebuilders Surge on Pending Sales Data (HOV, PHHM, LEN, MTH, RYL, NVR, DHI, TOL)
• Homebuilders Rally Despite Data (BHS, MTH, XIN, PHHM, PHM, RYL)

HOMEBUILDER CHART

HOMEBUILDER METRICS

Avg. Market Cap:	$3.1B
Avg. P/E Ratio:	22.6
Avg. Div Yield:	0.3%

After some recent analyst optimism in the homebuilder space, stocks sold off sharply on Thursday’s foreclosure data from RealtyTrac. According to coverage by Bloomberg, bank repossessions jumped 25% year-over-year in August. Seized properties spiked to 95,364 last month, marking the highest figure on record — dating back to 2005. Meanwhile, foreclosure filings were down by -5% year-over-year, but they were up by 4% sequentially.

As a whole, the Homebuilder Stocks Index is off by -4% on the day in a broad selloff that has all 18 components in negative territory. The Index has maintained a fractional lead on the S&P 500 over the last month.

M/I Homes (MHO), KB Home (KBH), PulteGroup Inc (PHM), and Skyline (SKY) are all among the day’s worst performing homebuilders, slipping by more than -4%. Meanwhile, luxury builder Toll Brothers (TOL), Beazer Homes USA (BZH), and Hovnanian Enterprises (HOV) are slipping by -1% or more.

At the end of the second quarter, NVR (NVR) was the Pros’ favorite homebuilding stock with nine 13F-filing asset managers counting shares among their top-15 U.S.-listed equity holdings.

It will be interesting to see whether bargain hunters start buying on the dip, or if more bearish housing data will erase the sector’s monthly gains. Investors can track the Homebuilder Stocks Index for performance trends and a suite of other metrics at tickerspy.com.

Tags: BZH, HOV, KBH, MHO, NVR, PHM, SKY, TOL