The Zacks Analyst Blog Highlights:KB Home, DR Horton, Lennar, Ryland Group and Toll Brothers

CHICAGO, Aug. 21, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the KB Home (NYSE: KBH-Free Report), DR Horton, Inc. (NYSE: DHI-Free Report), Lennar Corp. (NYSE: LEN-Free Report), Ryland Group, Inc. (NYSE: RYL-Free Report) and Toll Brothers, Inc. (NYSE: TOL-Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Wednesday's Analyst Blog:

July Housing Up 15.7% -- Back on Track?

After upbeat homebuilder confidence data, the U.S. housing construction and building permits figures rebounded strongly in July, suggesting that the housing market recovery might finally be back on track.

Data released by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau on Tuesday showed that housing starts surged to an eight-month high in July, growing 15.7% from the prior month to an annualized rate of 1.093 million units. Single-family housing starts were up 8.3%, while multifamily production jumped 28.9%. The July increase was a relief from the decline in the past two months and also beat market expectations.

Building permits, a gauge of future construction, also bucked the previous trend. After declining in June, building permits grew 8.1% in July.

Homebuilder confidence data for August released earlier this week hit its highest level since January. Homebuilders' confidence, as indicated by the National Association of Home Builders (NAHB)/Wells Fargo housing market index, rose 2 points to 55 in August — the third consecutive monthly gain for the index.

Homebuilder stocks rallied on the latest upbeat housing data. KB Home (NYSE: KBH-Free Report), DR Horton, Inc. (NYSE: DHI-Free Report), Lennar Corp. (NYSE: LEN-Free Report) and Ryland Group, Inc. (NYSE: RYL-Free Report) were all up more than 2%. Toll Brothers, Inc. (NYSE: TOL-Free Report) rose more than 1%.

The housing slowdown that began in the second half of 2013 worsened as the harsh winter in the December quarter delayed construction, raising serious doubts regarding the strength of the housing market.

Moreover, shortage of lots and skilled labor, rising cost of materials and declining inventory of new homes were not making things easier for the builders. Also, the spike in mortgage rates and rising home prices were hurting demand, which further added to the woes. As a result, many companies witnessed declining order trends in the December quarter.

As the winter chill subsided, several homebuilders recorded improving order trends in the March quarter. However, the spring selling season turned out to be softer than expected slowing order growth on a sequential basis for large homebuilders like Lennar and Pulte in the Jun 2014 quarter.

Also, some negative housing reports around that time indicated skepticism among home buyers regarding home purchases. Pending home sales, new home sales (single-family houses), housing starts as well as building permits declined in June from the prior month.

However, the latest robust housing data raises hope that the housing sector might well be gathering steam and buyers are back in the market with improvement in the job scenario. It, however, remains to be seen whether these construction gains can be sustained through the rest of the year.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

Get the full Report on KBH - FREE

Get the full Report on DHI - FREE

Get the full Report on LEN - FREE

Get the full Report on RYL - FREE

Get the full Report on TOL - FREE

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO

SOURCE Zacks Investment Research, Inc.



RELATED LINKS
http://www.zacks.com

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.