PulteGroup, D.R. Horton, Lennar Are S&P Gainers
The S&P 500 fell 5.95 points midday Wednesday to 1,366.23.
The homebuilders rose despite a report from Brockhouse Cooper that said prices of American homes aren't expected to increase soon. Pending home sales, reported Monday from the National Association of Realtors, rose 2% in January, near a two-year high. Analysts were expecting a 1% increase; sales dropped 3.5% in December.
Shares of PulteGroup increased 3.13% to $8.56.
The company has an estimated price-to-earnings ratio for next year of 16.55; the average for home construction companies is 21.2. For comparison, D.R. Horton and KB Home(KBH) both have higher forward P/Es of 17.8 and 29.62, respectively.
Eighteen of the 22 analysts who cover PulteGroup rated it hold; four analysts gave the stock a buy rating.
TheStreet Ratings gives PulteGroup a D+ grade and sell rating. The stock has risen 35.66% year to date.
D.R. Horton shares rose 1.37% to $14.08 despite Compass Point analysts lowering their rating on the stock to sell from neutral, according to Bloomberg.
The company has a forward P/E of 17.78; the average for home construction companies is 21.2. Toll Brothers'(TOL) forward P/E is 32.27.
Fifteen of the 22 analysts who cover D.R. Horton rated it hold. Five analysts gave the stock a buy rating and two rated it sell.
TheStreet Ratings gives D.R. Horton a C+ grade and a hold rating. The stock has increased 11.7% year to date.
Shares of Lennar rose 2.49% to $23.07.
Lennar has a forward P/E of 17.98; the average for home construction companies is 21.2. For comparison, NVR(NVR) and Standard Pacific(SPF) both have lower forward P/Es of 14.54 and 17.73, respectively.
Thirteen of the 24 analysts who cover Lennar rated it hold. Nine analysts gave the stock a buy rating and two rated it sell.
TheStreet Ratings gives Lennar a B- grade with a buy rating and $26.68 price target. The stock has risen 17.25% year to date.
-- Written by Alexandra Zendrian
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