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Stocks Under $10 with 50-100% upside potential - 14 days FREE!

This Housing Recovery Is Real

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

After several trips of returning the wrong part to the local Home Depot, you finally have the connection that you need. Wait a minute; one more trip to Home Depot to get a can of that blue glue that gets all over your skin and takes days to peel off. Several hours later, you are ready to tell your wife that she can turn on the water to the house after an all-day drought.

Well, so much for the ruined Saturday, but what about the stock of Toro? Let's first look at its performance:

Data from Best Stocks Now app

As you can see, the stock has been a great performer over the years. In fact, when I compare it against the other 3,000 or so stocks I follow, it earns a performance grade of A-.

What about value?

Data from Best Stocks Now app

The valuation is quite reasonable, with a forward PE ratio of 16.8 and a PEG ratio of 1.12. I love combining performance with value. The chart of the stock is also quite good. I am currently long Toro and Home Depot. I also have an exit plan on a both stocks, if things should change.

The bottom line: The rebound in housing is for real and it is in the very early stages. This is great news for real estate agents, appraisers, mortgage loan folks, investors in real estate and for investors in the housing-related stocks!

At the time of publication, Gunderson was long PCYC, ALXN, HD and TTC although positions may change at any time.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

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