Savvy Trades and Investments

[cliffvb]

No doubt the homebuilders face some headwinds this year: increasing mortgage rates, supply chain shortages and labor shortages. But they are already down at single digit PEs, both trailing and forward. Some are only at low single digit PEs. Those same supply chain shortages will also prevent them from overbuilding and so I don't see a boom bust scenario unfolding this year either. I expect demand to remain strong this year, their biggest challenge will remain getting their homes built. I also expect we will see some more blow out earnings reports in the group over the next 15-30 days as KBH reported last week.

Just once, I would like to see an analyst downgrade come the day before rather than the day after big drops in stocks' prices.