7 Stocks for a Housing Rebound
Written by: Scott Rothbort
Tickers in this article:
LEN TOL WHR PCL USG VAL IR
MILLBURN, N.J. (Stockpickr) -- There are many indications -- anecdotal and factual -- that the housing market is in the midst of a renaissance after a crushing multiyear depression.
Here are some of those indicators:
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- Housing starts have been on a steady rise since February 2011 and have registered 700,000 or more since November 2011 (with a minor blip to 697,000 in December 2011).
Building permits have to the most part followed the trend in housing starts.
The NAHB/Wells Fargo Housing Market Index has surged since September 2011to levels not seen since June 2007. The index gauges builder perception of single-family-home sales and sales expectations for the next six months.
New-single-family-home sales bottomed in February 2011 and have risen to a level not seen since April 2010. However, the 2009-2010 single-family-home sales were bolstered by Federal tax credits, which no longer exist.
The S&P/Case-Shiller Composite 20 City YOY Index of Home Prices, while still negative, has improved since April 2011
Mortgage rates remain at historic low levels and should remain so for several years.
So how can we take advantage of these trends? Here are seven stocks for the housing rebound.
USG (USG) , known to stock market veterans as US Gypsum, manufacturers building materials for residential and commercial construction, including drywall, panels, roofing and flooring.
The company suffered greatly as a result of the housing crash, but the turnaround has begun. Revenue bottomed in 2010 at $2.9 billion and is expected to rise to $3.4 billion this year and $3.7 billion next year.