Home Builder Stocks Powered Through Softening Housing Data – Housing Market Review (March, 2021)

Housing Market Intro and Summary Softening housing data pointed to more normalization in the housing market. Normalization is returning housing data to prior trends and in some cases suggesting important plateaus. Home builder stocks powered through the softening data to show strength in sharp rebounds and fresh all-time highs. The arrival of the Spring selling … Read more

LGI Homes: Stock All-Time Highs As Business Races Past COVID-19 Woes

LGI Homes (LGIH) gained 3.2% and closed just short of the all-time high it hit 2 days prior.

Look no further than LGI Homes (LGIH) as a confirmation that at least some parts of the country are back to business after a temporary pause from COVID-19 (coronavirus) economic woes. Last week, LGI Homes reported more astounding sales results. From the press release: June home closings: +16.7% year-over-year Q2 home closings: +3.1% year-over-year, the … Read more

LGI Homes: Strong Guidance Builds Hope Against the Housing Downturn

“Despite the challenging environment we encountered at the end of the first quarter, our business was stronger in April than we had originally expected and we are seeing positive momentum in recent sales trends that leads us to believe the impact from the COVID-19 pandemic may be less severe than we had originally expected. We … Read more

Housing Downturn 2020: LGI Homes Breaks to Fresh Low

It seems like an eternity has passed since LGI Homes (LGIH) reported yet one more bullish home closings report. For February, LGIH reported a year-over-year increase in home closings of 54.2% and a year-over-year increase of 57.1% in January and February combined. With another home closings report due soon, it looks like the stock market … Read more

From the Ashes of A Crash, Key Divergences in Housing-Related Stocks

This week’s market crash and subsequent sharp rebound revealed some key divergences among housing-related stocks. While one more home builder made it to my “do not touch” list, I see even more opportunities. Opportunities iShares Dow Jones US Home Construction Index Fund ETF (ITB) To start the week, the iShares Dow Jones US Home Construction … Read more

LGI Homes Revives Home Builders With Strong Closings Report

LGI Homes (LGIH) looks like it finally bottomed out of a post-earnings pullback and consolidation near and around 200DMA support.

During its earnings call, LGI Homes (LGIH) projected strong performance ahead. The company’s December home closings report delivered. LGI Homes closed 748 homes last month. The 49.6% year-over-year growth contributed to an 18.0% year-over-year overall growth rate in home closings for the first eleven months of 2019. The stock market responded positively by sending LGIH … Read more

Strong Sales for LGI Homes Set Up Earnings Reports for Lennar and KB Home

LGI Homes (LGIH) released a strong sales report that granted investors in home builders a much needed sigh of relief. On January 7, 2019 (mislabeled as the 4th in the press release), LGIH announced: …an all-time record for home closings during a single month with 884 homes closed in December 2018, representing year-over-year growth of … Read more

More Good Deeds Punished: LGI Homes Delivers Solid Earnings and Gets Back A Vicious Fade

Management for LGI Homes (LGIH) set aside an hour for its Q1 2018 earnings conference call. They only needed 37 minutes, including 23 minutes spent on Q&A. Perhaps they should have used the entire hour. Source: FreeStockCharts.com As the chart above shows, LGIH has had a wild two days following its earnings report. The first … Read more

Riding Renewed Market Sentiment, LGI Homes Soars Into A Strong Sales Report

The ink just dried on my last Housing Market Review. In that piece I lamented the on-going lagging performance of home builders and stagnating housing housing data, and thus concluded that it was time to call an end to the seasonal trade on home builders. Just two days later, home builders surged upward in sympathy … Read more

LGI Homes Breaks Out on March Closings Report

LGI Homes (LGIH) has been trapped underneath its 200-day moving average (DMA) for the entire year of 2016. Earnings reports and closing reports could not re-ignite last year’s enthusiasm in the stock. Finally, the report on March closings did the trick. In response to the March closing report, LGIH soared 12.7% on almost three times … Read more