|New Threads Only:|
|New Threads & Replies:|
Forum List » Guru News and Commentaries|
Guru News, Stock picks and commentaries
Home Builder Stocks Gurus Are Making Money On
Posted by: Holly LaFon (IP Logged)
Date: September 20, 2013 04:15PM
Home builders are in a cyclical industry, which are by definition more sensitive to economic fluctuations. As of July, the home building industry has seen several signs of improvement over last year. Three indicators in particular have risen: housing starts: new privately owned housing units started; housing starts: new privately owned single-family housing units started; and new single-family houses sold. See this illustrated in the chart below, using GuruFocus’ new Economic Indicators feature:
Some investment gurus are capitalizing on the bright spot’s effect in the market. The All-in-One screener can generate the home building stocks around the world whose prices have risen more than 50% year to date, arranged by the number who have purchased them.
The top stocks of this screen are: Albany International Corporation (AIN), Unifi Inc. (UFI), Comstock Holding Co. Inc. (CHCI), Xinyuan Real Estate Co. Ltd. (XIN) and Taylor Wimpey PLC (LSE:TW).
Albany International Corporation (AIN)
Albany has the highest guru ownership, with five holding its shares. The largest position is owned by NWQ Managers, who have 1,113,492 shares, or 3.5% of the company’s shares outstanding.
Investors traded Albany shares up 59% year to date, to around $36 on Friday.
Albany operates as a textile and materials processing company through two divisions: Machine Clothing and Engineered Composites. The part related to the home building sector is the building products business, which makes components for the machines which produce roof shingles, composite flooring, carpet and gypsum board facer mat, as well as other home products.
Albany International Corporation has a market cap of $1.14 billion, with a P/E ratio of 53.00 and P/S ratio of 1.50. The dividend yield of Albany International Corporation stocks is 1.60%.
See Albany’s 10-year quarterly revenue and earnings history:
Unifi Inc. (UFI)
Four gurus hold Unifi as of the second quarter. Small-cap investor Chuck Royce has the largest position, with 1,092,533 shares, or 5.59% of its shares outstanding.
UFI’s share price rose almost 80% year to day, sitting around $23.36 on Friday.
The company is a multi-national manufacturing company, primarily making yarn and related raw materials, that are used among other things in home furnishing.
Unifi Inc. has a market cap of $445.9 million, with a P/E ratio of 28.60 and P/S ratio of 0.70. Unifi Inc. had an annual average earnings growth of 3.2% over the past 10 years.
See Unifi’s 10-year quarterly revenue and earnings history:
Comstock Holding Co. Inc. (CHCI)
Two gurus are holding Comstock Holding. Chuck Royce has the largest position, at 1,178,249 shares, representing 5.68% of shares outstanding.
The stock price increased almost 66% year to date, reaching around $1.92 on Friday.
Comstock is a diverse real estate development and services company, erecting single-family homes and multi-family residences.
Comstock Holding Co. Inc has a market cap of $40.4 million; its shares were traded at around $1.91 with and P/S ratio of 1.30.
See its quarterly revenue and net income history:
Xinyuan Real Estate Co. Ltd. (XIN)
Jim Simons is the only guru with this stock, holding 1,883,400 shares, equivalent to 2.65% of shares outstanding.
Xinyuan’s share price rose 77% year to date, to $6.35 per share on Friday.
Based in China, Xinyuan is a developer of large residential real estate projects in China’s Tier II cities and aims at the midd-income consume rmarket.
Xinyuan Real Estate Co. Ltd. has a market cap of $450.8 million, with a P/E ratio of 3.50 and P/S ratio of 0.50. The dividend yield of Xinyuan Real Estate Co. Ltd. stocks is 2.80%.
See its quarterly net income and revenue history:
Taylor Wimpey PLC (LSE:TW)
Only one guru holds this stock as well: Bernard Horn. He owns 1,727,422 shares, reflecting 0.05% of shares outstanding and 1.4% of his total assets managed. Taylor Wimpey’s stock has increased 55% year to date, to close at $102 on Friday.
Taylor Wimpey is a residential developer operating in four divisions: Housing United Kingdom, Housing North America, Housing Spain and Corporate.
The company has a $3.3 billion market cap, P/E of 15.61, P/B of 1.74 and P/S of 1.58. Both its P/B and P/S ratios are near their respective 10-year highs. The rate of five-year revenue per share decline is 32.2%, and EBITDA growth over the past 12 months is 50%. Taylor Wimpey has a dividend yield of 0.63%.
See the company’s 10-year annual revenue and earnings history:
To see more stocks with these criteria, use the same screener here.
GuruFocus Real Time Picks alerts you for the stock purchases and sales that Gurus have made within the last two days. Follow your favorite Gurus closely with GuruFocus' Premium Membership! If you are not a Premium Member, we invite you for a 7-Day Free Trial.
Guru Discussed: Chuck Royce: Current Portfolio, Stock Picks
Jim Simons: Current Portfolio, Stock Picks
Stocks Discussed: AIN, UFI, CHCI, XIN, LSE:TW,