Homebuilders Slammed as New Home Sales Miss
Tweet
Share
E-mail
Get Alerts PHM Hot Sheet
Down)Join SI Premium – FREE
Shares of homebuilders are getting hammered early on Wednesday following the release of October new home sales data. The data showed a 0.3 percent drop in sales compared to an expected gain of 0.3 percent.
Immediately following the data print, shares of PulteGroup (NYSE: PHM), Toll Brothers (NYSE: TOL), Hovnanian Enterprises (NYSE: HOV), Beazer Homes (NYSE: BZH), Lennar (NYSE: LEN), and KB Home (NYSE: KBH) all dropped, with HOV taking the brunt of the damage trading lower by over 5 percent.
Sector ETF, SPDR S&P Homebuilders (NYSE: XHB), is down 1.2 percent.
The violent reaction to the data shows investors are particularly sensitive to housing data, especially in light of healthy year-to-date gains in the sector and what some say is stretched valuations in homebuilder stocks.
On an annual rate bases, seasonally adjusted new home sales totaled 368,000-units, while September new homes sales figures were revised down 20,000 to 369,000 units. Economist predicted a unit-rate of 390,000 in October.
The flattish figures suggest acceleration in home buying may be ebbing, though volatility is expected.
Immediately following the data print, shares of PulteGroup (NYSE: PHM), Toll Brothers (NYSE: TOL), Hovnanian Enterprises (NYSE: HOV), Beazer Homes (NYSE: BZH), Lennar (NYSE: LEN), and KB Home (NYSE: KBH) all dropped, with HOV taking the brunt of the damage trading lower by over 5 percent.
Sector ETF, SPDR S&P Homebuilders (NYSE: XHB), is down 1.2 percent.
The violent reaction to the data shows investors are particularly sensitive to housing data, especially in light of healthy year-to-date gains in the sector and what some say is stretched valuations in homebuilder stocks.
On an annual rate bases, seasonally adjusted new home sales totaled 368,000-units, while September new homes sales figures were revised down 20,000 to 369,000 units. Economist predicted a unit-rate of 390,000 in October.
The flattish figures suggest acceleration in home buying may be ebbing, though volatility is expected.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Cohen & Steers (CNS) to Join S&P SmallCap 600
- PowerSchool Holdings, Inc. (PWSC) Mentioned Cautiously at Spruce Point
- Primerica (PRI) Mentioned Cautiously at Bear Cave
Create E-mail Alert Related Categories
ETFs, Trader TalkRelated Entities
Standard & Poor'sSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
