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!

Market Preview: The Waiting Game

As for Wednesday's scheduled news, Hovnanian Enterprises (HOV) is slated to report its fiscal second-quarter results before the opening bell. The average estimate of analysts polled by Thomson Reuters is for the Red Bank, N.J.-based home builder to report a loss of 32 cents a share in the April-ended period on revenue of $299 million.

The data on the housing market has been mostly positive of late but Wall Street is taking some profits as the broad market sours. Hovnanian shares closed Tuesday at $1.70, up nearly 20% for the year, but the stock began May above $2.

The home builders enjoyed a huge rally early in the year with Hovnanian's stock hitting a 52-week high of $3.31 on Feb. 9 but bullishness about the volatile group has been waning. KB Home (KBH) reached a peak of $13.12 on March 16 and closed Tuesday at $6.77; D.R. Horton (DHI) finished the day at $14.86, down 17% since hitting a 52-week high of $17.91 on May 2; and shares of Lennar (LEN) have dropped more than 15% since topping out at $30.12 on May 16.

The sell side is still very down on Hovnanian with 11 of the 12 analysts covering the stock at either hold (3), underperform (4) or sell (4), and the 12-month median price target. The company has been a loss maker for years but is starting to grow the top line again. It's missed Wall Street's expectations for its quarterly results in five of the past eight quarters and has $166 million in cash vs. $1.67 billion in debt on the balance sheet so diving in isn't for the faint of heart.

Check out TheStreet's quote page for Hovnanian for year-to-date share performance, analyst ratings, earnings estimates and much more.

Other companies reporting quarterly results on Wednesday include Analogic (ALOG), Brown-Forman (BF.A), Cyberonics (CYBX), Men's Wearhouse (MW), Pall Corp. (PLL), Pep Boys (PBY), and Vail Resorts (MTN).

The economic calendar features the Mortgage Bankers Association's weekly mortgage application index at 7 a.m. ET; data on productivity and unit labor costs for the first quarter at 8:30 a.m. ET; weekly crude inventories data at 10:30 a.m. ET; and the release of the Federal Reserve's beige book snapshot of economic conditions for May at 2 p.m. ET.

2 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!
DOW 17,003.34 +20.75 0.12%
S&P 500 1,979.68 +0.77 0.04%
NASDAQ 4,458.2340 +13.3250 0.30%

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