Housing

Stern Agee Remains Very Bullish as Housing Data Keeps Rising

The housing data keeps rolling in stronger and stronger for the U.S. economy. What is at issue is whether investors should keep paying up and up for housing stocks. Rather than “Buy low and sell high” we are getting to see a “Buy high, sell higher” call.

Sterne Agee’s Jay McCanless has reviewed this month’s home builders data and he remains positive on the group. He believes that investors should continue buying D.R. Horton Inc. (NYSE: DHI), Ryland Group Inc. (NYSE: RYL) and Meritage Homes Corp. (NYSE: MTH), because he believes the builders’ pricing power will increase in 2013.

McCanless sees competitive housing supply continuing to decline. Another boost comes from inventory shortages likely limiting sales in certain metropolitan areas and acting as a boost for the home builders mentioned.

McCanless said:

Our takeaway from this month’s data is to continue buying these three names because the fundamental backdrop remains positive. We believe builders’ pricing power can increase in 2013 as competitive supply comes off the market, and we estimate the risks of upside EPS surprises from pricing power and available inventory outweigh the risks of a downside EPS surprise in the current environment.

D.R. Horton Inc. (NYSE: DHI) is up 0.8%, at $24.67 with a 52-week range of $13.80 to $25.56.

The Ryland Group (NYSE: RYL) is up 1%. at $42.22 against a 52-week range of $17.18 to $43.00.

Meritage Homes Corp. (NYSE: MTH) is up the most of these three home builders, with a gain of 1.3% to $47.97, against a 52-week range of $24.31 to $48.62.

Read also: UBS Has Very Unusual List of Housing Market Winners

Credit Card Companies Are Doing Something Nuts

Credit card companies are at war. The biggest issuers are handing out free rewards and benefits to win the best customers.

It’s possible to find cards paying unlimited 1.5%, 2%, and even more today. That’s free money for qualified borrowers, and the type of thing that would be crazy to pass up. Those rewards can add up to thousands of dollars every year in free money, and include other benefits as well.

We’ve assembled some of the best credit cards for users today.  Don’t miss these offers because they won’t be this good forever.

 

Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.