Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of homebuilder PulteGroup (NYS: PHM) jumped 10% briefly today after the company was upgraded by an analyst.
So what:Ticonderoga Securities thinks PulteGroup shares have gotten so cheap investors shouldn't pass them up. Analyst Stephen East doesn't think home sales will drop much more and the company's price/book value and normalized EPS multiples are at attractive levels. Of course, this comes a day after RBC Capital Markets analyst Robert Wetenhall said he was bearish on homebuilders and expects housing prices to decline further.
Now what: I've been hearing about a homebuilder recovery for years and it never quite seems to take hold. Home prices may be stabilizing, but there is still a ton of inventory on the market that homebuilders have to compete against. This Fool just can't get excited about a company posting losses in a housing market that is flat at best.
Interested in more info on PulteGroup? Add it to your watchlist.
At the time thisarticle was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.