3 Stocks That Are Absurdly Cheap Right Now
The U.S. Census Bureau and U.S. Department of Housing and Urban Development released the latest figures for new home sales at the end of October. September sales, while down slightly from August, were still 32% above the same month in 2019. Contract signings were up 20.5% year over year. Despite continuing joblessness that exceeds the depths of the 2008-2009 financial crisis and a pandemic that continues to disrupt daily life, housing has been red hot all summer thanks mostly to record-low interest rates.
With housing sales robust, you might expect the stocks of U.S. homebuilders D.R. Horton (NYSE: DHI), Lennar (NYSE: LEN), and PulteGroup (NYSE: PHM), to be near all-time highs. If you guessed that, you'd be right. What you might not guess is that even near all-time highs, these stocks are absurdly cheap. Investors have to be cautious, though. Homebuilder stocks can be deceiving, trading at extremely low price-to-earnings multiples during the good times, and lofty ones during a downturn.
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Source Fool.com
