Buy Toll Brothers (TOL), PulteGroup (PHM) on Improvement in High-End Consumer Sentiment - Goldman
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Price: $147.09 +1.36%
Rating Summary:
22 Buy, 11 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
22 Buy, 11 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Analysts at Goldman Sachs are recommending clients buy high-end homebuilders Toll Brothers (NYSE: TOL) and PulteGroup, Inc. (NYSE: PHM) following their first quarter housing survey.
The survey showed that the high-end consumer is more confident versus six months ago about the economy and home prices, and prefers new homes by a wide margin. Toll Brothers and PulteGroup are best positioned to monetize these trends the firm said. Both are rated Buy.
Other key takeaways from survey showed that pricing is tilting positive, with 63% expecting prices to be stable/positive compared to 58% six months ago. Also, DIY sentiment shows that consumers are more willing to loosen their purse strings on home improvement spending. This is positive for building products companies like Owens Corning (NYSE: OC). Lastly, rising rent levels coupled with low interest rates continues to increase the desire for home ownership.
The survey showed that the high-end consumer is more confident versus six months ago about the economy and home prices, and prefers new homes by a wide margin. Toll Brothers and PulteGroup are best positioned to monetize these trends the firm said. Both are rated Buy.
Other key takeaways from survey showed that pricing is tilting positive, with 63% expecting prices to be stable/positive compared to 58% six months ago. Also, DIY sentiment shows that consumers are more willing to loosen their purse strings on home improvement spending. This is positive for building products companies like Owens Corning (NYSE: OC). Lastly, rising rent levels coupled with low interest rates continues to increase the desire for home ownership.
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