Homebuilder Confidence Dips in July, CNBC's Olick Reports

The National Association of Home Builders monthly sentiment index showed builder confidence dropped lower in July than analysts' estimated, CNBC's Diana Olick said today.
By Lindsay Rittenhouse ,

NEW YORK (TheStreet) -- The National Association of Home Builders (NAHB) monthly sentiment index shows builder confidence in the single family housing market waned in July, CNBC's Diana Olick reported on "Squawk on the Street" Monday.

The index, released today, reported builder confidence fell one point to 59. "That's a miss. The Street was looking for unchanged at 60. Anything above 50, though, on the NAHB's sentiment index is considered positive territory," Olick commented.

"The builders continue to say they're having trouble with land and labor constraints but they also cite consumer confidence given global economic problems as well as the looming presidential election," Olick stated.

In addition, the index reported current sales decreased one point to 53, buyer traffic dipped one point to 45 and sales expectations over the next six months declined 3 points to 66.

Homebuilder company stocks are slipping on the news. Shares of D.R. Horton (DHI) - Get Report are lower by 0.12% to $33.76 this morning.

Separately, TheStreet Ratings rated D.R. Horton as a "buy" with a score of A.

This is based on the convergence of positive investment measures, which can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and attractive valuation levels.

TheStreet Ratings feels its strengths outweigh the fact that the company shows low profit margins.

You can view the full analysis from the report here: DHI

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

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