Pulte Homes Inc (PHM)

[PennyP1cker]

Barrons.com•February 16, 2018

Home builders are getting set to construct more units than they have at any time since the recession, based on building permits, but it comes at a curious moment: Mortgage rates are rising faster than they have in years—which means builders are unlikely to get the same prices they would have a year ago. Housing starts soared 9.7% to 1.33 million, well ahead of expectations for 1.23 million and last month's count of 1.19 million, according to the Commerce Department. Building permits, an indicator of future growth, soared 7.4% to 1.4 million.

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Home builders are set to boom in 2018. Demand is strong and supply is very weak, buyers have little choice but to buy new homes because there aren't many existing homes available. For example, in my city we have very few houses for sale and you can get whatever you want for your house if you put it up for sale, within reason of course.

PHM - Strong buy
Price target: $40