Housing demand is outpacing supply. Unsold inventory is down to only three months of supply. California wildfires reduced lumber and helped push up housing prices by 11%. The beneficiaries:
homebuilders. Here are my top housing stocks with specific ratings and buy recommendations.
1. Beazer Homes BZH Rating:
• Good: Price/Sales ratio low, industry high rank #7, CFRA buy, Reuters outperform.
• Schwab: Equity A.
• Sy grade: A.
• Buy? Yes.
2. D. R. Norton Homebuilder DHI Rating:
• Good: Yahoo buy, MSN buy, Zacks #1 – B value B growth B VGM, Bar Charts buy, Tip strong buy, positive technicals , positive momentum, return on investments up 21%, upgrades.
• Bad: Price to sales ratio high, Stock Invest sell, hedge down by 5.5M shares, insiders sold.
• Schwab: P/E ratio 11 down to 8, PEG .71, equity A up from B, annual div 1.11%, net profit margin high 11%, long term debt low 26, ROI high 21, EPS high, Argus buy, Suisse outperform, Ned buy, CFRA 5*****, Undervalued $202, Institutions own 82%.
• News: Bullish.
• Sy grade: A.
• Buy? Yes.
3. Lennar Corp LEN Rating:
• Good: Undervalued, performance up, short-term, mid-term, long-term up, MSN buy, Zacks #1 strong buy, B value, B growth, A momentum, A VGM, Forward P/E low 8.63, Dividend 1.24%, short-term moving average positive, momentum up, asset growth up.
• Schwab: Equity A, Ned buy, Argus buy, Reuters outperform, Institutions own high 94%, Fair value high $261.
• News: Bullish.
• Sy grade: B+.
• Buy? Yes.
4. Patrick Industries PATK Rating:
• Good: Yahoo high buy, undervalued, performance up mid-term, long-term, MSN strong buy, Zacks #1, Bar Chart strong buy, Stock Invest high buy, Tip Rank moderate buy, 7/10, Technicals up, Momentum up, ROI up.
• Bad: Hedge down, insiders sold.
• Schwab: Equity B, Edge Long, Growth good.
• Sy grade: A.
• Buy? Yes.
5. Winnebago WGO Rating:
• Good: Performance up short-term, mid-term, long-term, Yahoo high Buy, MSN strong buy, Zacks #1, Bar strong buy, Stock Invest buy, Tip Ranks strong buy, solid 10/10, technicals up.
• Bad: Hedge down, Insiders sold.
• Schwab: Reuters outperform, Edge long.
• News: Very bullish.
• Sy grade: A.
• Buy? Yes.
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Victor Santos Sy graduated Cum Laude from UE with a BBA and from Indiana State University with an MBA. Vic worked with SyCip, Gorres, Velayo (SGV – Andersen Consulting) and Ernst & Young before establishing Sy Accountancy Corporation in Pasadena, California.
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He has 50 years of experience in defending taxpayers audited by the IRS, FTB, EDD, BOE and other governmental agencies. He is publishing a book on his expertise – “HOW TO AVOID OR SURVIVE IRS AUDITS.” Our readers may inquire about the book or email tax questions at [email protected].