Lennar’sbetter-than-expected earnings on Tuesday has reinforced one analyst’s positive view of the housing market's recovery. In a CNBC interview, he detailed a few stocks that could rise alongside the climbing housing market.
The company’s revenue topped Wall Street’s estimates to rise 30 percent to $724.9 million while its new orders rose 33 percent to 3,022 homes — its strongest first-quarter sales since 2008.
“So this is reinforcing our constructive view on the housing market,” said Robert Wetenhall, a RBC Capital Markets homebuilder analyst. “We think the read-through from Lennar , which is an excellent company with terrific management, is also applicable to the broader builders.”
Wetenhall has a $29 price target on the company. He said the housing sector should a good place for long-term investors as it begins to exhibit signs of healing.
“Overall, we’re definitely constructive on the sector for long-term investors with a two- to five-year time horizon," he said. "If you’re playing for a near-term gain, your upside could be limited, but if you have a longer investment horizon, you have to take a hard look at the group.”
Wetenhall is bullish on the housing market despite KB Home’s dismal quarterly earnings report last week.Page 1 of 3 | Next Page