Housing's Upside Becomes Clearer
In the last two days we have seen the latest snapshot on the domestic housing market. The latest readings from the National Association of Home Builders Housing Market Index and the latest Real-Time Home Price Tracker from the real estate firm Redfin, as well as August housing starts data, point to a continued improving trend in domestic housing.
This bodes well for homebuilders such as PulteGroup (PHM), Toll Brothers (TOL), Ryland Homes (RYL), NVR (NVR) and others. I continue to favor the shares of M/I Homes (MHO), given its stock's favorable valuation -- the shares trade at a 35%-40% discount to the homebuilder peer group on the basis of P/E and price-to-book -- and the company's position in the Midwest and Southern housing markets. That combination, coupled with earnings growth that is slated to more than double in 2013, leads to upside to at least $27 for M/I Homes' shares. ...291 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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