JPMorgan analyst Michael Rehaut sees “only modest upside potential” for homebuilding stocks as demand growth will likely moderate in H2 2020.
Valuations are “reasonable but not inexpensive” and the stocks will face tougher comps next year, Rehaut writes.
Like “catalyst-driven ideas” in building products; he rates home builders Lennar (LEN), PulteGroup (PHM -0.4%) and Century Communities (CCS +0.3%) as Overweight.
In building products, Stanley Black & Decker (SWK +0.1%), Fortune Brands Home & Security (FBHS -0.1%), Whirlpool (WHR +0.3%), and Masonite International (DOOR) rank as Overweight.
In the past year, iShares U.S. Home Construction ETF (ITB +0.1%) has climbed 48% vs. the S&P 500’s 29% rise during the same period.
No comments:
Post a Comment