Homebuilders Are Drastically Mispriced Given Growth Outlook

There is a huge disconnect between Wall Street homebuilder estimates and where these stocks trade. If the analysts are anywhere near correct this entire sector is wildly undervalued. They are trading at 10X earnings and consensus estimates call for 22%-82% earnings growth by 2028. That is functionally rapid growth companies trading at value multiples. Either the market is wrong, and these stocks are way too cheap, or the analysts are wrong about their earnings forecasts. In this article we will examine the ...