Buy Homebuilder Stocks on 10-15% Dip: Analyst
U.S. home prices in November were softer than expected, in the latest sign that a rebound in the housing market is still tenuous, according to Standard & Poor's/Case-Shiller indexes. David Goldberg, building and building products analyst at UBS, shared his investment insights.
“What you’re going to see is a pattern of uneven results" in housing data, Goldberg told CNBC.
“Some aren’t going to look as good—you’re going to see a pattern throughout the first half of this year…that’s going to eventually start to level off in the second half of the year and get more stable.”
“You’re going to see home prices stabilize, especially as the broader economy starts to get better,” he added.
Goldberg said he expects the homebuilder stocks to drop by another 10 to 15 percent, where he will start to get more "constructive" on the group.
“Buy” rating on Toll Brothers
“Neutral” rating on Hovnanian , Beazer , KB Home , Lennar , Ryland and Standard Pacific .
- Watch Goldberg's Previous Appearance on CNBC (Dec. 29, 2009)
Other Market Views:
- How Homebuilders Target Baby Boomers
- 20% to 25% Correction by May: Market Analyst
- Bull Market Not Over—Use Dips to Buy: Pro
CNBC Data Pages:
No immediate information was available for Goldberg or his firm.