By Richard Henry Suttmeier | Forbes
Homebuilder stocks DR Horton, KB Home, Lennar, PulteGroup and Toll Brothers are not cheap after rising 141% to 237% from lows set between March 18 to March 23. DR Horton and Lennar set all-time intraday highs on Thursday, July 23.
Longer-term homebuilders are a buy when their P/E ratios are 8% and lower. Today they have P/E ratios between 9.62% and 12.80%.
Key Housing Statistics
The National Association of Home Builders (NAHB) Housing Market Index (HMI) plunged by a record 42 points to 30 in April, down from 72 in March. This reading then rose to 37 in May then back to 72 in July.