NEW YORK ( TheStreet) -- If you feel the way I do about the housing recovery you're happy as all get-out to see both new and existing home sales rising almost monthly. Homebuilders are feeling more confident as well and new home construction is buoyant.
Builders began construction in December 2012 at a seasonally adjusted rate of 954,000 new homes. That enthusiastic number is nearly double the rate hit during the Great Recession low reached in April 2009. On Wednesday the Commerce Department reports housing starts for January 2013.
If that's not enough good news, after a three-day weekend the stock market indices hit new highs across the board, especially new all-time highs in small and mid-cap stocks.
Still, while many are still quite optimistic about the housing recovery, the majority of economists anticipate the rate of new construction to have ratcheted downward a bit. The question for stock investors is whether that will cool down the home-building related stocks such as Weyerhaeuser (WY).WY has been one of the darlings of the sector and has risen dramatically over the past year, as the following chart demonstrates flamboyantly. Along with the share price I've included the diluted quarterly year-over-year earnings per share so you can see what's driving the price trend. WY data by YCharts
One of the analysts to whom I listen as often as possible is Jim Cramer. As the markets continued to move higher on Tuesday, Cramer and the co-portfolio manager of
"As a top Pacific Northwest timberland company (25% of sales), it is in terrific position to benefit from the turn in housing due to the declining supplies from British Columbia, improving Asian export demand and limited exposure to paper producing regions like the South and Northeast.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV