Construction-Related Stocks Show Resilience
By Juan Carlos Arancibia, Investor's Business Daily
Read More At IBD: http://news.investors.com/investing-stock-spotlight/102212-630269-real-estate-and-construction-stocks-show-resilience.htm#ixzz2BkT5sBL9
Posted 10/22/2012 04:39 PM ET
If there's one sector showing resilience as the market struggles, it's construction.
The building sector leads the IBD NYSE and Nasdaq Research Tables, one of several areas where real estate-related stocks are displaying strength.
Two exchange traded funds that track the homebuilding industry, SPDR S&P Homebuilders (HXB) and iShares Dow Jones U.S. Home Construction (ITB), made new highs on Friday. The two lead all sector ETFs.
The Stock Spotlight finds some building and real estate stocks as those industries show increasing signs of a rebound and benefit from attractive mortgage rates.
Homebuilding company Lennar (LEN) made a new high as well Friday, its shares having nearly doubled so far this year.
Lennar, which builds in 18 states, has its own mortgage business, Rialto Investments, which acquires and monetizes distressed loans and securities. It also has been going after good land deals and has given it a competitive edge.
Lennar's earnings zoomed 200% and 82% the past two quarters as it works its way out of the industry's long slump.
The strength in the mortgage business is reflected in two other Spotlight companies, Nationstar Mortgage Holdings (NSM) and Home Loan Servicing (HLSS) . The latter made another new high Monday and is extended. Nationstar has been pulling back after a steep climb that started in mid-May and is not yet in a buy area.
Aside from the financial side of real estate, building products company Eagle Materials (EXP) is near a new high after a pair of successful pullbacks to the 10-week line the past three months.
Earnings growth soared 1,900% and 1,450% the past two quarters, although from single-digit EPS in the year-ago periods.
The building sector leads the IBD NYSE and Nasdaq Research Tables, one of several areas where real estate-related stocks are displaying strength.
Two exchange traded funds that track the homebuilding industry, SPDR S&P Homebuilders (HXB) and iShares Dow Jones U.S. Home Construction (ITB), made new highs on Friday. The two lead all sector ETFs.
The Stock Spotlight finds some building and real estate stocks as those industries show increasing signs of a rebound and benefit from attractive mortgage rates.
Homebuilding company Lennar (LEN) made a new high as well Friday, its shares having nearly doubled so far this year.
Lennar, which builds in 18 states, has its own mortgage business, Rialto Investments, which acquires and monetizes distressed loans and securities. It also has been going after good land deals and has given it a competitive edge.
Lennar's earnings zoomed 200% and 82% the past two quarters as it works its way out of the industry's long slump.
The strength in the mortgage business is reflected in two other Spotlight companies, Nationstar Mortgage Holdings (NSM) and Home Loan Servicing (HLSS) . The latter made another new high Monday and is extended. Nationstar has been pulling back after a steep climb that started in mid-May and is not yet in a buy area.
Aside from the financial side of real estate, building products company Eagle Materials (EXP) is near a new high after a pair of successful pullbacks to the 10-week line the past three months.
Earnings growth soared 1,900% and 1,450% the past two quarters, although from single-digit EPS in the year-ago periods.
Read More At IBD: http://news.investors.com/investing-stock-spotlight/102212-630269-real-estate-and-construction-stocks-show-resilience.htm#ixzz2BkT5sBL9
No comments:
Post a Comment