I covered the waves of downgrades for the homebuilders in three prior posts. On April 30 I wrote, Homebuilder Downgrades Cloud Earnings. This was followed by Don't Believe Stocks Are Still Cheap on May 10. Then on May 17 I noted additional downgrades in Homebuilders' Downgrades Continue.
Today my list of 11 homebuilders is dominated by upgrades, three to buy ratings.
Beazer Homes (BZH - Get Report) ($20.00 vs. $21.47 on May 17) was downgraded to sell on May 10, then to strong sell on May 17. Today Beazer has been upgraded back to hold. The stock peaked at $23.29 on May 10. My annual value level is $13.95 with a weekly risky level at $23.29.
DR Horton (DHI - Get Report) ($23.78 vs. $26.80 on May 17) was downgraded to sell on April 30, then to strong sell on May 17. Today DHI has been upgraded to buy. DR Horton peaked at $27.74 on May 15. My quarterly value level is $22.96 with a weekly risky level at $27.44.Hovnanian (HOV - Get Report) ($6.05 vs. $5.99 on May 10) was downgraded to hold on May 10 and remains hold rated today. My weekly value level is $5.63 with a semiannual pivot at $6.00 and weekly risky level at $6.19. KB Home (KBH - Get Report) ($21.50 vs. $23.88 on May 17) was downgraded to sell on May 17 and has been upgraded to buy today. KB Home traded to its 2013 high at $25.14 on May 15. My quarterly value level is $13.06 with an annual pivot at $22.95 and monthly risky level at $23.99.
Lennar (LEN - Get Report) ($39.23 vs. $42.40 on May 10) was downgraded to sell on May 9 and has been upgraded to hold today, and it tested its 200-day simple moving average (SMA) at $38.69 on Monday on a reversion to the mean. Lennar set its 2013 high at $44.40. My semiannual value level is $36.03 with a quarterly pivot at $40.95 and weekly risky level at $43.10.
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