Pulte: Homebuilder Winners & Losers

NEW YORK ( TheStreet) -- PulteGroup ( PHM), Weyerhaeuser ( WY) and Lennar ( LEN) were among the homebuilder stocks in positive territory Monday after the National Association of Home Builders' index of builder sentiment came in unchanged in May.

The NAHB said early Monday its confidence index, which measures builder perceptions of current single-family home sales and sales expectations for the next six months, came in flat at a reading of 16 in May, matching expectations of industry watchers, according to consensus estimates listed on Briefing.com.


Any reading below 50 indicates poor sentiment. The index has not been above 50 since April 2006.

Though the index remained unchanged, and has been at a reading of 16 for six of the past seven months, market watchers were pleased it had not fallen this month, bidding builder stocks mostly higher in morning trading.

Weyerhaeuser led the group, gaining 2.7% ahead of midday. D.R. Horton ( DHI) added 2.1%, PulteGroup 1.1%, Lennar 1.6%, and KB Home ( KBH) 1.5%.

The SPDR S&P Homebuilders ( XHB), an exchange-traded fund that tracks the homebuilder sector, bucked the trend, trading 0.1% lower. Small-cap builders Standard Pacific ( SPF) and Comstock Homebuilding ( CHCI) were also in negative territory, shedding 1.1% and 1.5%, respectively.


The homebuilder sector is well off its late-spring peak, when buyers were rushing to take advantage of federal tax credits for homebuyers, and is only slightly higher than at the beginning of 2010.


The homebuilder sector is well off its late-spring peak, when buyers were rushing to take advantage of federal tax credits for homebuyers, and is only slightly higher than at the beginning of 2010.

Whereas other sectors have begun an economic rebound in earnest, the housing sector continues to lag as a bloated supply of homes for sale -- both newly built and previously owned -- coupled with depressed pricing from foreclosures, pressures the market.

-- Written by Miriam Marcus Reimer in New York.

>To contact the writer of this article, click here: Miriam Reimer.

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