The stock of some home building companies has performed well recently. This post includes Stock Selection Guides (SSG) for 4 home builders, 2 medium and 2 large. The companies are Lennar (LEN), D.R. Horton (DHI), LGI Homes (LGIH) and Century Communities (CCS). Also included is a Stock Comparison Guide (SCG) of the 4 companies including industry averages for many items. All were prepared using the BetterInvesting online SSGPlus platform.
Low interest rates, rising average price paid for a home, and a recovering economy bode well for the industry. Higher material costs and possible labor shortages may slow growth. Interest rates are expected to rise somewhat, but are expected to remain low by historical comparison.
The individual SSG are below as is a Stock Comparison Guide of the 4 companies. Sales and EPS growth rates were the lower of Value Line projections or analysts consensus estimates. Value Line projections may have been lowered more, if the Earnings Predictability score was low. Estimated low price was 60% of the current price for the LGIH and CCS. For LEN and DHI, the estimated low price was 65% of the current price. The current price used was close of business 5/25/2021. CCS and LGIH have been recommended companies by the ICLUBcentral Small Cap Informer newsletter in 2021.
These are MY estimates and are not Buy or Sell recommendations. These examples are meant as ideas for further study. Remember to do your own analysis.
Russell Malley

CCS_052521.pdf (133kb) downloaded 13 time(s). LGIH-052521.pdf (138kb) downloaded 4 time(s). DHI_052521.pdf (136kb) downloaded 5 time(s). LEN_052521.pdf (135kb) downloaded 2 time(s). Home Build_SCG.pdf (44kb) downloaded 4 time(s).