The Zacks Analyst Blog Highlights: D.R. Horton, Toll Brothers, Lennar, PulteGroup and KB Home

    The Zacks Analyst Blog Highlights: D.R. Horton, Toll Brothers, Lennar,
                            PulteGroup and KB Home

PR Newswire

CHICAGO, Aug. 20, 2013

CHICAGO, Aug. 20, 2013 /PRNewswire/ 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 D.R. Horton, Inc. (NYSE:DHI-Free
Report), Toll Brothers (NYSE:TOL-Free Report), Lennar Corporation
(NYSE:LEN-Free Report), PulteGroup, Inc. (NYSE:PHM-Free Report) and KB Home
(NYSE:KBH-Free Report).


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

Here are highlights from Monday's Analyst Blog:

Builder Confidence Rises in August

Homebuilders' confidence rose for the fourth consecutive month in August
despite rising interest rates, recording the strongest increase in almost
eight years.

The National Association of Home Builders/Wells Fargo Housing Market Index
(HMI), known as the homebuilder sentiment index, jumped three points to 59 in
August from 56 in July.

The index reflects improved sales expectations backed by an increase in both
the demand for and prices of new homes. Any reading on this index above 50
indicates that an increasing number of builders view the market conditions as
good than poor. Of the three index components, current sales increased three
points while future sales expectations went up one point. However, buyer
traffic remained unchanged.

Stocks of homebuilders like D.R. Horton, Inc. (NYSE:DHI-Free Report), Toll
Brothers (NYSE:TOL-Free Report), Lennar Corporation (NYSE:LEN-Free Report),
PulteGroup, Inc. (NYSE:PHM-Free Report) and KB Home (NYSE:KBH-Free Report)
rose on the encouraging data.

The jump in the index shows that the recent interest/mortgage rate hikes have
not dampened the housing recovery much. According to the Freddie Mac mortgage
survey, the 30-year fixed mortgage rate has risen from 3.59% on May 23 to
4.40% on Aug 15. High interest rates decrease demand for new homes as mortgage
loans become expensive, thus lowering a buyer's purchasing power.

Though interest rates have started increasing, they are still below historical
levels and housing is still very much affordable. Thus, high affordability
levels, increased rentals and historically-low interest rates are driving the
housing momentum. In addition, accelerating job growth and increasing consumer
confidence are boosting demand for new homes.

Supply however remains limited by low home inventories, both for new and
existing homes. A shortage of land and labor is restricting the production of
homes, both single and multi-family. Home prices have thus started moving up
with market demand gaining momentum and supply remaining limited. In fact, the
rising home prices and thinning home inventories have created a sense of
urgency among homebuyers who are now more anxious to buy a house before prices
shoot up further.

However, the housing momentum seen in 2012 and in the first half of 2013 seems
to have slowed down somewhat with the recent spike in mortgage rates, tight
credit availability and limited supply of land and labor.

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

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

About Zacks 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

Get the full Report on DHI - FREE
Get the full Report on TOL - FREE
Get the full Report on LEN - FREE
Get the full Report on PHM - FREE
Get the full Report on KBH - FREE

Follow us on Twitter:

Join us on Facebook:

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

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339

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 assumedthat 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 andis 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 for information about the performance numbers
displayed in this press release.

SOURCE Zacks Investment Research, Inc.

Press spacebar to pause and continue. Press esc to stop.