Apr 1 2013
U.S. home builders impressive run has continued in 2013 as positive data supporting the U.S. housing markets recovery continues to roll in. The SPDR S&P Homebuilders ETF (XHB) has surged approximately 13.25 percent so far in 2013. Research Driven Investing examines investing opportunities in the Residential Construction Industry and provides equity research on PulteGroup, Inc. (NYSE: PHM) and Toll Brothers Inc.
Access to the full company reports can be found at:
www.RDInvesting.com/PHM
www.RDInvesting.com/TOL
Home prices in the U.S. posted their largest gain in January since June 2006, just prior to the "housing bubble burst." The Standard & Poor's/Case-Shiller 20-city home price index rose 8.1 year-over-year in January, up from the 6.8 percent seen in December. All of the cities tracked by the index saw prices rise, while 8 out of the 20 posted double digit-gains.
Separately, a report released by the Commerce Department earlier this month showed permits for future construction were at a 4 and a half year high. Home builders in the U.S. started construction on houses and apartments at a seasonally adjusted annual rate of 917,000 in February, the second-largest pace seen since June 2008.
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Shares of PulteGroup are up approximately 11 percent in 2013, and have more than doubled over the past year. For the fourth quarter of 2012 home sale revenues totaled $1.5 billion, a year-over-year increase of 27 percent. The company is expected to release results for the first quarter of 2013 on Monday, April 22nd.
Shares of Toll Brothers have gained more than 45 percent in the past year. The company reported total revenues of $424.6 million for the first quarter of fiscal 2013, an increase of 32 percent when compared to revenues of $322 million in the year ago quarter.