Join        Login             Stock Quote

4 Ways To Invest In Housing

 November 28, 2012 11:03 AM

by Stephen Leeb, editor The Complete Investor The Federal Reserve will continue to buy mortgages, keeping long-term interest rates exceptionally low. Existing home sales have continued to improve from their 2010 lows. And while home prices are starting to rise, they still remain quite affordable by historical standards.

With these factors working in their favor, it's not surprising that housing stocks have been outstanding performers in the past year or so – with plenty of upside room to grow. Here's a look at our favorites.

Home builder NVR Inc. (NVR) is a truly outstanding pure play in housing with no debt, healthy free cash flow and excellent growth prospects.

[Related -JPMorgan Chase & Co. (JPM): Capital Concerns Should Ease In 2014]

This extremely well-run company managed to remain profitable throughout the housing sector crash and is now well positioned to thrive during the sector's revival. 

We also like real estate developer Toll Brothers (TOL), whose operations are centered on luxury residential communities in 21 states across the U.S. This segment of the market has been the most resilient in the housing downturn and should likewise fare best as the sector recovers.

In the "related companies" category, Wells Fargo (WFC) is a strong pick as the nation's largest originator of mortgages, with Warren Buffett being the company's biggest shareholder. With the stock trading at less than 9 times 2013 earnings, it's clearly undervalued.

[Related -Why dividend-paying utilities stocks could lag again in 2014]

We'll also mention Masco (MAS), a Fortune 500 company that focuses on manufacturing and distribution of building products and branded consumer products for the home improvement and construction industries – and it's Home Depot's largest supplier.  

So our message here – and corresponding stock picks – remain consistent and clear. Look to a reviving housing and real estate sector as an essential component of the recovery.

And your best bets on this trend will be those housing and housing-related companies with strongfundamentals, sound management and solid growth prospects in their own niche within this space.



Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageTackling China's Debt Problem: Can Debt-Equity Conversions Help?

China’s high and rising corporate debt problem and how best to address it has received much attention read on...

article imageWill Job Growth Kill The Bear-Market Signal For Stocks?

It’s all about jobs now. Actually, it’s always been about jobs. But the stakes are even higher—perhaps more read on...

article imageAutomating Ourselves To Unemployment

In this current era of central planning, malincentives abound. We raced to frack as fast we could for the read on...

article imageFed: Waiting For June… Or Godot?

The Federal Reserve left interest rates unchanged yesterday, as widely expected. But the possibility of a read on...

Popular Articles

Daily Sector Scan
Partner Center

Related Articles:

Why I Like Financial Stocks For 2014
More Articles on: Finance , Construction

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.