Building on Momentum
As a sector, the homebuilders have had an amazing run. As measured by the SPDR S&P Homebuilders ETF (XHB), shares of select stocks in this market subdivision have risen 72% since Oct. 3, 2011. The questions is, have these stocks laid a foundation for further gains, or have they already hit the ceiling?
Based on the charts, both the individual names and the sector as a whole appear to be overbought. If we base our analysis on valuation, however, some of the homebuilders still have room to run while others may have already peaked....462 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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