LGIH- looks like a buy on the dip day to me

I see no actual bad news, just sector drag. Thinking about buying on the dip. I sure like the EPS and PE.



I haven’t seen anything in particular, but am guessing this is market sentiment due to the fed rate increase, it being winter, that they have to sell more homes than previous quarters this year to get to their own estimates (a previous post came up with these numbers, not me), oil is low in general and they build in Texas (I’ve read on here that TX oil is doing ok as is the economy in TX, but I am talking market sentiment not reality).

I am not an expert in the home builder sector either, so I dont know how LGIH compares to their competition, which is a way I base things like EPS and PE on. a PE of 11 might seem great, unless the rest of the market and sector has a lower PE. Same with a PE of 25 or 60. Price is what someone is willing to pay for it, in my opinion.

I have been keeping an eye on LGIH, but have not bought personally. It would seem like a decent time to either jump in (when risk is high and sentiment is low, the market is a scale as pointed out in previous posts) or buy on the dip, but on the flip side it might not be. Thats the fun!


1 Like

I was also trying to find any news as to why the 6% further drop today and came up empty handed.