Take Profits On Homebuilder Stocks Now

Take Profits On Homebuilder Stocks Now

getty

Homebuilder stocks DR Horton, KB Home, Lennar, PulteGroup and Toll Brothers are not cheap. These stocks are up between 172% and 22% since mid-March lows. DR Horton and Lennar set all-time intraday highs on Tuesday, August 18.

You can be long homebuilders when their P/E ratios are 8% and lower. Today the P/E ratios are between 11.16% and 13.68%.

Key Housing Statistics  



The National Association of Home Builders (NAHB) Housing Market Index (HMI) has been extremely volatile since April. In April, the index plunged by a record 42 points to 30, down from 72 in March. This reading then rose to 37 in May then to 72 in July. In August, the index rose six points to 78, the highest in its 35 years