This Important Metric Is Looking Better for These 3 Stocks

While a lot of attention is paid to new-home construction, the reality is, existing-home sales is a critical metric for companies like Tile Shop Holdings  (NASDAQ: TTS  ) , Lumber Liquidators  (NYSE: LL  ) , and Trex Co  (NYSE: TREX  ) . 

Lumber Liquidators' recent downward revision of its guidance for the year sent its shares lower, and led one analyst to revise his projections for Tile Shop Holdings down on an expectation of correlation between their comp sales, even though Tile Shop won't announce earnings until early August. Trex, however, was recently upgraded by one analyst, and its stock has rebounded. 

In the short video below, Motley Fool contributor Jason Hall gives some insight into housing data. Does the most recent data indicate good things ahead? Check out the video for Jason's take. 

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  • Report this Comment On July 27, 2014, at 11:43 PM, tombland wrote:

    Jason, I thought the insider buying at Tile Shop in May was positive, would you agree? It doesn't really suggest they were having a bad Q2. Plenty of insider buying since the start of 2014 in fact, though perhaps they were trying to demonstrate support for the company after the troubles of last year. What are your thoughts? I've been contemplating an investment for some time and am very tempted by this $10/$11 region we're in, which is significantly under the price of the May insider buying...

  • Report this Comment On July 28, 2014, at 1:48 AM, TMFVelvetHammer wrote:

    tombland,

    I'm usually relatively neutral to insider trading, because there are so many different things that lead insiders to sell, and let's be honest about this: insiders probably don't know anything more about what the business will do over the next few years than those of us who follow it closely.

    If anything, it demonstrates that management can be as bad at picking a time to buy as the rest of us!

    Seriously, I'd say insiders buying is a positive, but not something that would lead me to either buy or sell alone, and I wouldn't read too much into it.

    Let me say this as to the price: I hold call options with a strike that is near the current price. IF the growth returns, this price is a steal. Big if, but I'm expecting it will return.

    Thanks for your comments.

    Jason Hall

    Article author

  • Report this Comment On July 28, 2014, at 2:44 PM, tombland wrote:

    Thanks Jason. Tile Shop Holdings earnings seem to be today though, not in a couple of weeks as you said in your video, unless I have got my wires crossed.

  • Report this Comment On July 29, 2014, at 12:41 AM, TMFVelvetHammer wrote:

    TTS did report today. I was probably thinkin about Lumber Liquidators reporting next week as well. The TTS report honestly is about what I expected. Not terrible but not exactly good either. I still have the same view of the long term prospects.

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