Late last week the stock analysts at Wedbush slapped a buy rating on several home builder stocks, signaling confidence in the market for new homes. MarketWatch reports:
As low mortgage rates bolster demand and the economy remains supportive, homebuilder stocks are now the preferred proxy for housing market demand for analysts at Wedbush, according to a note published Thursday.
The Wedbush team upgraded Lennar LEN, -0.43% LEN.B, -0.47% to outperform on the same day, and maintained an outperform rating on Taylor Morrison Home Corporation TMHC, -1.64% , Beazer Homes USA Inc. BZH, -0.25% , and Century Communities, Inc. CCS, -3.01%
That’s a shift from a prior call, in which lumber distributors were their preferred way of playing housing, but with lumber price volatility spiking and housing fundamentals looking healthier, “investors should be willing to pay a higher multiple for homebuilder earnings,” the analysts wrote.
