E Tuesday Talk: Of Rice And Rain

  1. Value. As you can see, the most expensive stocks have gone up the most, but besides that, there’s been a steady favoring of cheap stocks as well. The fairly-priced stocks have done the worst.
  2. Growth. These factors have been relatively unaffected. Growth stocks still rule supreme.
  3. Stability. The most unstable stocks have outperformed like mad.
  4. Quality. Low quality is highly favored.
  5. Momentum. Stocks with terrible (or downward) momentum have done by far the best; stocks with high momentum have done OK, but only at the very top end of the chart.
  6. Sentiment. Stocks that are undergoing major changes in sentiment, whether higher or lower, are doing the best.
  7. Size. The tiniest stocks are crushing the others."

Talk about the U.S. housing market continues unabated. Low mortgage rates, short supply, Millennial first home madness and so forth. Yes, the market remains on and Sreoshi Bera  in 5 Stocks To Tap Into The Booming US Housing Market has some ideas for investors who want to participate in the party.

Gray Bungalow House Under Blue and White Cloudy Sky

Pixabay

"5 Stock Picks

Given the current scenario, the housing market is doing well despite the constant supply-side headwinds. Hence, we have shortlisted five housing and related companies’ stocks that are poised to grow.

Louisiana-Pacific Corporation (LPX) manufactures and markets building products, primarily for use in new home construction, repair and remodeling, and outdoor structure markets. The company’s expected earnings growth rate for the current year is 68.7%...The Zacks Consensus Estimate for this company’s current-year earnings has been revised 58.7% upward over the past 60 days. Louisiana-Pacific flaunts a Zacks Rank #1 (Strong Buy). 

Forterra, Inc. FRTA) manufactures and sells pipe and precast products. The company’s expected earnings growth rate for the current year is 38.3%...The Zacks Consensus Estimate for this Zacks Rank #1 company’s current-year earnings has been revised 27.5% upward over the past 60 days. 

KB Home (KBH) builds and sells various homes, including attached and detached single-family residential homes, townhomes, and condominiums. The company’s expected earnings growth rate for the current year is 81.5%...The Zacks Consensus Estimate for this company’s current-year earnings has been revised 11.2% upward over the past 60 days. KB Home carries a Zacks Rank #2 (Buy).

Lennar Corporation LEN) engages in homebuilding operations, which include the construction and sale of single-family attached and detached homes...The Zacks Consensus Estimate for this Zacks Rank #2 company’s current-year earnings has been revised 23.9% upward over the past 60 days.

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William K. 1 month ago Member's comment

The very wise advice given to gamblers has been " Do not gamble more than you can afford to lose", and this rather obviously applies to stocks as well. And the other, equally as wise advice, ha been to not gamble with borrowed money. So in the stock markets they call it "leverage" so a to make it sound less dangerous.

The really interesting part of the whole thing is that some folks do quite well even as they go in the opposite direction, gambling far more than they can afford to lose, and doing it all with borrowed (leveraged) funds. That is a puzzle that I have no hint of solving. And a game that I have chosen to not play. I may occasionally wager, but I never ever gamble.

David Marshall 1 month ago Contributor's comment

A wise wager is better than a brash bet, though Yuval Taylor presented a contrarian analysis 🧐

Robert Capasso 1 month ago Member's comment

I thought Yuval Taylor made some excellent points.