RT Rep. Marjorie Taylor Greene🇺🇸 (@RepMTG)I don’t like 50 year mortgages as the solution to the housing affordability crisis.It will ultimately reward the banks, mortgage lenders. and home builders while people pay far more in interest over time and die before they ever pay off their home.In debt forever, in debt for life!Instead stop companies and asset managers from buying up single family homes, which has driven the price of homes and forced homebuyers to compete with corporations that turn thousands of ...

Core Insights - Homebuilders stocks experienced a mixed performance in Q3, with revenues collectively exceeding analysts' expectations by 2.8% while guidance for the next quarter remained in line [3] - KB Home reported revenues of $1.62 billion, a decrease of 7.5% year-on-year, but still surpassed analysts' expectations by 1.2% [4] - Champion Homes achieved the highest revenue growth among peers, reporting $684.4 million in revenues, an 11% increase year-on-year, and outperforming analysts' expectations by 6.9% [7][8] Industry Overview - Homebuilders have traditionally leveraged economies of scale for competitive advantages, but are increasingly focusing on energy efficiency and conservation as key drivers of innovation [2] - The homebuilding sector is highly cyclical, significantly influenced by macroeconomic factors such as interest rates, which affect both new and existing home sales [2] Company Performance - KB Home's operational performance was noted as solid, with the company making progress in reducing build times and costs, despite missing analysts' EBITDA and backlog estimates [5][6] - KB Home's stock has declined by 3% since its earnings report, currently trading at $60.50 [6] - Champion Homes' stock rose by 21.6% following its earnings report, currently trading at $80.97 [8]

Core Insights - Lennar Corporation is navigating a challenging housing market characterized by affordability issues and declining demand, primarily due to high mortgage rates and construction costs [1][4] - The company is focused on operational efficiency and a disciplined asset-light strategy to manage these challenges [1][3] Production and Sales Performance - In Q3 of fiscal 2025, Lennar started and delivered approximately 21,500 homes while selling over 23,000, aligning production with demand to prevent excess inventory [2] - The cycle time improved to 126 days, the lowest to date, enhancing operational efficiency and inventory turnover, which increased to 1.9 times from 1.6 times year-over-year [2][9] Land and Inventory Management - Lennar ended the quarter with 0.1 years of owned homesites, a decrease from 1.1 years, with 98% of its land under control through optioned agreements, reflecting an asset-light model [3][9] - This strategy minimizes risk and allows for greater flexibility in response to market conditions [3] Market Conditions and Strategic Positioning - Despite uneven housing demand, Lennar's efficient operating framework and lean land strategy provide resilience, positioning the company to benefit when buyer confidence returns [4] - The recent Federal Reserve rate cuts may offer near-term relief for housing affordability, potentially stabilizing market activity [5] Competitor Insights - Other builders like Toll Brothers and D.R. Horton are also adjusting pricing and incentives to sustain demand amid high mortgage rates [5][6][7] - D.R. Horton has maintained stable operations by balancing pricing and incentives while improving cycle times and lowering inventory levels [7] Stock Performance and Valuation - Lennar's stock has gained 14.1% over the past three months, outperforming the Zacks Building Products - Home Builders industry but underperforming the S&P 500 index [8] - The stock currently trades at a forward 12-month price-to-earnings (P/E) ratio of 14.34, indicating a premium compared to industry peers [14] Earnings Estimates - Earnings estimates for fiscal 2025 and 2026 have been revised down to $8.25 and $9.01 per share, reflecting analysts' concerns about growth potential [11] - The estimated figure for fiscal 2025 indicates a year-over-year decline of 40.5%, while fiscal 2026 shows an expected improvement of 9.2% [12]

Core Viewpoint - Meritage Homes reported quarterly earnings of $1.39 per share, missing the Zacks Consensus Estimate of $1.71 per share, and showing a significant decline from $2.67 per share a year ago, indicating an earnings surprise of -18.71% [1][2] Financial Performance - The company posted revenues of $1.42 billion for the quarter ended September 2025, which was 6.85% below the Zacks Consensus Estimate and down from $1.59 billion in the same quarter last year [2] - Over the last four quarters, Meritage has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Meritage shares have declined approximately 7.2% since the beginning of the year, contrasting with the S&P 500's gain of 16.9% [3] - The current Zacks Rank for Meritage is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.80 on revenues of $1.6 billion, and for the current fiscal year, it is $7.26 on revenues of $6.1 billion [7] - The trend of earnings estimate revisions for Meritage was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Building Products - Home Builders industry, to which Meritage belongs, is currently ranked in the bottom 24% of over 250 Zacks industries, indicating potential challenges ahead [8] - Beazer Homes, another company in the same industry, is expected to report a significant decline in earnings, with a projected EPS of $0.80, reflecting a year-over-year change of -52.7% [9]

Core Insights - The article emphasizes the importance of value investing, highlighting the identification of undervalued companies through fundamental analysis and traditional valuation metrics [2][10] - It introduces the Zacks Rank and Style Scores system, particularly focusing on the "Value" category for identifying strong value stocks [3][10] Company Analysis: Century Communities (CCS) - CCS holds a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential [4] - The stock's current P/E ratio is 9.51, significantly lower than the industry average of 12.02, with a 52-week range of 5.33 to 10.15 [4] - CCS's P/B ratio is 0.76, compared to the industry's average of 1.43, with a 52-week range of 0.60 to 1.36 [5] - The P/S ratio for CCS is 0.45, while the industry average is 0.82, indicating a favorable valuation [6] - CCS has a P/CF ratio of 7.09, lower than the industry's average of 8.88, with a 12-month range of 4.76 to 10.00 [7] Company Analysis: Persimmon (PSMMY) - Persimmon also has a Zacks Rank of 2 (Buy) and a Value Score of A, suggesting it is a strong value stock [8] - The Forward P/E ratio for Persimmon is 10.53, compared to the industry average of 12.02, with a 52-week range of 9.54 to 17.42 [8][9] - Persimmon's PEG ratio is 1.36, while the industry average is 2.12, indicating better growth potential relative to its price [8] - The P/B ratio for Persimmon is 1.03, which is lower than the industry's average of 1.43, with a 52-week range of 0.92 to 1.69 [9] Conclusion - Both Century Communities and Persimmon are identified as likely undervalued stocks, supported by their strong earnings outlook and favorable valuation metrics [10]

Group 1 - The October reading on home builder sentiment from the National Association of Home Builders (NAHB) reached its highest level since April [1] - Builder expectations for future sales significantly increased, indicating a positive outlook for the housing market [1] Group 2 - The Housing Market Index (HMI) components reveal a more detailed narrative about builder sentiment and market conditions [1]

Core Insights - Warren Buffett may retire as CEO of Berkshire Hathaway at the end of this year, but the investment decisions of the conglomerate continue to reflect his views on the economy [1] Investment Focus - Throughout 2025, Berkshire's investments have concentrated on brands that are closely tied to consumer health and prospects, with American consumers showing resilience post-pandemic [2] - Berkshire has been cautious about the AI stock trend, opting instead for investments in essential brands that align with long-term consumer goals [3] Specific Investments - Berkshire has significantly increased its stake in Lennar Corporation by 265%, now holding approximately 7 million shares valued at over $886 million, despite Lennar's share price dropping 28% in the past year [4] - The company has also increased its stake in Chevron by 3.45 million shares in the second quarter of this year [7] - Berkshire's investment in Constellation Brands has more than doubled to about 12 million shares worth $2.2 billion, reflecting a shift towards consumer-centered brands [10] Market Conditions - The U.S. housing market faces a severe shortage of over 4.7 million homes, exacerbated by rising costs and limited supply, which are hindering new home construction [6] - The Federal Reserve has begun lowering interest rates, which could lead to lower mortgage offers for consumers, although the federal funds rate does not directly set mortgage rates [5] Consumer Spending Trends - Gasoline prices have stabilized, contributing to consumer spending growth, with gas accounting for about one-third of the growth in consumer buying last month [9]

Core Insights - Lennar Corporation (LEN) has seen an 11.3% decline in stock price since the announcement of its Q3 fiscal 2025 earnings, outperforming the Zacks Building Products - Home Builders industry but lagging behind the broader Zacks Construction sector and the S&P 500 index [1] Financial Performance - In Q3 fiscal 2025, Lennar's adjusted earnings per share and total revenues missed the Zacks Consensus Estimate by 5.6% and 2.5%, respectively, with year-over-year declines of 48.7% and 6.4% [3] - The average selling price (ASP) of home deliveries decreased by 6.7% year over year to $393,000, leading to home sale revenues of $23.24 billion, down from $24.28 billion a year ago [6] - For Q4 fiscal 2025, Lennar expects the ASP of delivered homes to be between $380,000 and $390,000, down from $430,000 reported a year ago [6] Market Conditions - The U.S. housing market is currently facing affordability challenges, impacting Lennar's business in the near and mid-term [5] - The Federal Reserve recently cut interest rates by 0.25 percentage points, but ongoing market pressures and macro uncertainties continue to affect homebuilders like Lennar [10][11] Profitability and Margins - Lennar's gross margin contracted by 430 basis points to 18% from 22.3% year over year, primarily due to lower revenue per square foot and higher land costs [8] - The company's guidance predicts margins will remain flat at 17.5% in Q4 fiscal 2025, down from 22.1% a year ago [9] Competitive Position - Lennar holds a strong position among large U.S. homebuilders, with competitive advantages including scale, geographic diversification, vertical integration, and financial strength [17][20] - Compared to competitors like D.R. Horton, PulteGroup, and NVR, Lennar's operational scale allows it to navigate housing cycles more effectively [20] Earnings Estimates - Analysts have revised Lennar's earnings estimates for fiscal 2025 and fiscal 2026 down to $8.58 and $9.22 per share, respectively, indicating concerns about the stock's growth potential [13][14]

Tim, your final trade. >> I'm going to get myself a new neck tie. I'm going to treat you to one, Brian.In the meantime, I should have been listening to Karen all these years on Johnson Controls. Key part of that data center trade, electrical components, etc. Karen, >> ah, we are nice to say. Um, on it, we talked about this a lot last week.PPH, this is ETF, big cap pharma. I like it. I think there's value in this space.More to uh you saw the home builders downgraded and everything was down. I don't think you ...

Core Insights - D.R. Horton (DHI) and NVR are two prominent stocks in the Building Products - Home Builders sector, with DHI currently offering better value for investors compared to NVR [1] Valuation Metrics - DHI has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook than NVR, which has a Zacks Rank of 4 (Sell) [3] - DHI's forward P/E ratio is 14.37, significantly lower than NVR's forward P/E of 19.22, suggesting DHI may be undervalued [5] - The PEG ratio for DHI is 3.59, while NVR's PEG ratio is much higher at 11.17, indicating DHI's earnings growth is more favorably priced [5] - DHI's P/B ratio stands at 2.05, compared to NVR's P/B of 6.11, further supporting DHI's valuation advantage [6] - DHI has a Value grade of B, while NVR has a Value grade of C, reinforcing the perception that DHI is the more attractive investment option [6]