This Day On The Street
Continue to site
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

Three You Must Watch and Another Coming to Market

NEW YORK ( TheStreet) - Three companies reporting earnings next week are a must watch, because they can make or break a lot of traders. Two of the stocks are short-squeeze candidates and the third can go either way. HOV Chart HOV data by YCharts

Hovnanian Enterprises Inc (HOV) Hovnanian Enterprises Inc (HOV)

Hovnanian Enterprises (HOV) is one of the nation's largest homebuilders. The company's homes are marketed and sold under the trade names K. Hovnanian Homes, Matzel & Mumford, Brighton Homes, Parkwood Builders, Town & Country Homes, Oster Homes and CraftBuilt Homes.

52 Week Range: $1.52 to $7.43

Book Value: $-4.43

Wall Street expects earnings to come in below last year's quarter. The earnings release is scheduled before the market opens Wednesday.

The current mean estimate is a loss of five cents a share, declining seven cents from a profit of two cents in the corresponding period last year. Analysts' estimates for this quarter range from losing 10 cents to losing only three cents a share.

Analyst opinion is mixed. Most of those surveyed don't believe a buy or a sell is warranted. The stock appreciated 225% in the last year, and the average analyst target price for Hovnanian is $5.25.

Hovnanian could turn a profit in 2013, and the market is pricing in sunnier days, but you want to buy this one only during dips. We don't know how the housing market will react to rising interest rates and at the time of writing, the average 30-year fixed rate is flirting with 4%.

We have to travel back over a year, and almost into 2011 to find a week when average rates were over 4%. Regardless of why rates may continue to climb, we can safely assume that with all else being equal, higher rates are inversely correlated with home prices and demand.

Because of those expected headwinds, which also create price and profit pressure, analysts may be generous with 2014 profit projections near 50 cents a share. Without any hiccups, a safer number to model is 40 to 45 cents for upside potential.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.70 -0.60%
FB $101.91 0.90%
GOOG $683.11 -0.15%
TSLA $150.47 4.73%
YHOO $26.76 -1.25%


Chart of I:DJI
DOW 15,660.18 -254.56 -1.60%
S&P 500 1,829.08 -22.78 -1.23%
NASDAQ 4,266.8370 -16.7550 -0.39%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs