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What: Shares of homebuilder PulteGroup
So what: Ticonderoga Securities thinks PulteGroup shares have gotten so cheap investors shouldn’t pass them up. Analyst Stephen East doesn’t think home sales will drop much more, and the company’s price/book value and normalized EPS multiples are at attractive levels. Of course, this comes a day after RBC Capital Markets analyst Robert Wetenhall said he was bearish on homebuilders and expects housing prices to decline further.
Now what: I’ve been hearing about a homebuilder recovery for years, and it never quite seems to take hold. Home prices may be stabilizing, but there is still a ton of inventory on the market that homebuilders have to compete against. This Fool just can’t get excited about a company posting losses in a housing market that is flat at best.
Interested in more info on PulteGroup? Add it to your watchlist.