After hitting low on June 17th, the group is rallying. Today’s DHI news resulted in small sell off (2%). I think it is time to consider buying the dips on this name. Fundamentally very strong, balance sheet are strong, after the GFC the group got extremely disciplined, land investments were controlled, spec houses were controlled. IN fact, the new home building is below the household formation ever since. The industry has lots of tailwinds.
MY favorite names are TOL, PHM, both expected to earn over $10 per share. Toll caters to luxury and has decent land inventory (land that is acquired before COVID). PHM has been steadily buying back shares.