NEW YORK (TheStreet) -- Hovnanian Enterprises (HOV) - Get Report stock is advancing 7.62% to $1.77 on heavy trading volume on Tuesday afternoon after the U.S. Commerce Department reported strong growth in single-family home sales last month.
Red Bank, NJ-based Hovnanian Enterprises designs, constructs and sells residential homes, including single-family homes, townhouses and condominiums.
New home sales rose 16.6% to 619,000 units in April, the most homes since January 2008 and the largest increase since January 1992, Reuters reports.
The median price for new homes jumped 9.7% year over year to $321,100.
The housing data supports the theory that domestic economic growth is accelerating, which will allow the Fed to increase interest rates as soon as next month, Reuters added.
So far today, 2.99 million shares of Hovnanian Enterprises have exchanged hands, nearly double its average daily volume 1.55 million shares.
Separately, Hovnanian Enterprises has a "sell" rating and a letter grade of D+ at TheStreet Ratings because of the company's deteriorating net income, poor profit margins, generally disappointing stock performance and feeble earnings per share growth.
You can view the full analysis from the report here: HOV
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 article's author.