Is it time to call the bottom in homebuilder stocks? The sector showed some signs of life after one of the Street's top-rated housing analysts, Citigroup's (C) Stephen Kim, released a new research report on Oct. 1 saying the worst was over. If the past three decades of downturns are any indication, Kim figures, a three-month decline in homebuilder stocks greater than 30% typical leads to an average return over the next three months of 31%. As a result, Kim upgraded all the biggies: Centex (CTX), D.R. Horton (DHI), Lennar (LEN), Pulte Homes (PHM), and Ryland Group (RYL) to a buy recommendation, up from hold.
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