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
TheStreet Open House

This Housing Recovery Is Real

Stocks in this article: LEN DHI HD PCYC TTC ITB ALXN

NEW YORK ( TheStreet) -- The stock of Miami-based Lennar (LEN - Get Report) is up 168.3% over the last 12 months. The stock of Ft. Worth, Texas-based DR Horton (DHI) is up 133% over the last year. How about Atlanta, Ga.-based Home Depot (HD)? Its stock is up 87.1% over the last 12 months. By comparison, the S&P 500 is up 26% during the same period of time.

This is my current ranking of the various sectors of the market that I track on a daily basis; the good and the bad:

Data from Best Stocks Now app

Biotech, with its A-, is followed by housing, with a B+. As of now, I remain heavily invested in the biotech sector. It has been at the top of the rankings almost since the beginning of the year. I took a 62% profit in Pharmacyclics (PCYC) and a 64% profit in Alexion Pharmaceuticals (ALXN) earlier this year. I am back in both of those stocks right now, along with several other biotech-related stocks.

I own them in the aggressive growth accounts I manage. As of Friday, this portfolio of 25 stocks was up just over 20% year to date. To see the whole portfolio, you can get four free copies of my weekly newsletter by clicking here.

As mentioned above, the U.S. home construction sector is ranked No. 2. I use the exchange-traded fund iShares Dow Jones U.S. Home Construction ETF (ITB) as a proxy for this sector. Let's take a quick look at its performance over the years:

Data from Best Stocks Now app

As you can see, the five-year performance of the overall housing sector has just about matched the return of the S&P 500. Over the last three years, however, the sector has delivered about eight points of alpha per year over the market. This sector has really roared over the last 12 months, with a return of 119.7%.

You can also see from the one-year chart of ITB below, just how strong this sector has been:

Is this rebound in the housing market for real?

I was asking myself this same question several weeks ago, when decided to invite Mick Pattinson back on my daily radio show, Best Stock Now.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

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