Trade Alert

For those looking to diversify away from Tech, here’s an idea: DR Horton

_{Posted by Club Member Sammy Theeee 24.6.23}

US new housing surged in May, up 22%, versus down 3% in April.

Looks like the construction sector may have bottomed. Consumers are getting used to higher mortgage rates, we see that in the increase in mortgage applications to purchase a home, which were up 17% yoy in May.

Builders are seeing increasing demand as the supply of housing stock is low. At the same time, builders are also seeing an ease up in the supply chain, which provides confidence to start new contracts and more visibility on materials cost. Homebuilder sentiment jumped and is now in positive territory, I think we’ll see further recovery in the sector.

DR Horton’s chart shows a steady upward trend, up over 77% over the year. Still with a Forward PE of 11, the stock looks attractive here.

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