This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Homebuilder Losers: Horton Hears a Boo

Stocks in this article: DHI TOL NVR LEN MHO

NEW YORK ( TheStreet) -- There was a "for sale" sign up across the homebuilding sector today, as investors exacted revenge on release of weak earnings from the nation's largest homebuilder, D.R. Horton (DHI) on Friday morning.

By mid-afternoon, D.R. Horton was down more than 15% for the day, the largest percentage loss on the NYSE.

The $0.73 loss per share, far worse than expected by the Street -- and resulting from larger impairments than many had projected -- sent shares across the sector tumbling. Even worse, the freefall came just two weeks after preliminary fourth quarter and year-end results from luxury builder Toll Brothers (TOL) had breathed a little life into the homebuilding industry.

If there is a silver lining in the smack given to the sector by investors, it's this: even as the D.R. Horton numbers gave investors the jitters, most of the stocks did not drop as much as they had gained from the Toll Brothers spike two weeks prior to today. They may not be winners at week-end, but they were losers to a lesser degree thanks to the positive numbers from Toll Brother, which led a possibly unjustified rally.

Most Popular
Apple's Decade: How It Can Hit $500
Most Commented
Biotech Stock Mailbag: FDA Playbook

"There was a massive positive reaction to the Toll earnings, and by and large the lift from Toll was bigger than today's sell-off," said Michael Widner, analyst at Stifel Nicolaus Equity Research. Since builders had become a place to put money in the past few weeks, they became a good beta trade, which was much in evidence today, Widner explained.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs