Homebuilder stocks move up in premarket ahead of NAHB Housing Market Index release – DHI, LEN, PHM, MDC

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NAHB Housing Market Index arrives on Monday at 14 GMT. The Housing Market Index has underperformed consensus for four straight months. Higher interest rates greatly affecting sentiment – $LEN, $DHI, $PHM, $MDC are cheap by claymarkets stocks trading

is set to release September's figure at 14:00 GMT , and the consensus is forecasting a value of 48. This would be one point lower than August and would signal a moderately weakening home-building industry. Theis a poll of sentiment among homebuilders and it is normally seen as fairly predictive of movement in that market and the trajectory of the overall US economy.

the NAHB Housing Market Index has actually missed consensus every single month in 2022, besides April when it was in line. Of course, you say, those are backward-looking multiples. While earnings are slated to pull back in 2023, most of these stocks are still seeing forecasts with robust cash flows ahead. MDC, for instance, is expected to report $9.37 a share this year and $7.37 a share in 2023. That would still give it a forward PE of 4. Analysts expectis expected to earn $13.61 in fiscal 2023 – a 20% decline YoY but still quite safe.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

 

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