Construction is Back

Which sector was hit hardest during the most recent financial meltdown beside banks?  How about the home builders.  After the bubble burst of real estate that cause the worst financial disaster since the 1930s, the home builders have suffered excessive inventories, disappearance of buyers and lack of funding.  As a result many construction projects are either on hold or even went bankrupt.  However recent article from business week  shows the home builder could be back to the spotlight again, except this time in a positive way.  

From the article the home builders that survived, such as Shea Homes and Toll Brothers have been buying previously foreclosed residential projects from banks at huge discount.  Also in the article, data compiled by Bloomberg shows the 12 largest homebuilders by market value added 16631 lots to their control over the most recent quarters.  This could very well be the beginning of the bullish trend on the home builder stocks so maybe its a good time to look at some of the big builders in US.

• DR Horton (DHI) : Texas based DR Horton is $3.5 billion in market cap and has presence in 27 states and 75 markets in United States.  The company has been making profit for the past three quarters and the most recent quarter show revenue surged $1.4 billion from $0.9 billion same quarter a year ago.
• Pulte Group (PHM): Michigan based Pulte Gruophas market cap of $3.3 billion and has presence in 842 communities throughout United States.  The company has finally turned profitable in the latest quarter while revenue doubled from $678 million to $1.3 billion.
• Toll Brothers (TOL): Toll Brothers paid $23 million for the golf course community that once cost $78 million.  The company is $3.1 billion in market cap and finally swing to net income after quarters of net losses.
• Lennar Corp. (LEN): Miami based Lennar Corp. is $2.8 in market cap and has more than 80,000 home sites throughout united states.  Lennar has been generating net income in recent quarters and its insiders have also been buying shares since June of 2010.
• KB Home (KBH): Los Angeles based KB Home is $986 million in market cap and operates throughout United States.  The company generated $50 million more in revenue in the latest quarter compared to same quarter of last year.