NEW YORK (TheStreet) -- Shares of Hovnanian Enterprises Inc. (HOV) are higher by 6.55% to $4.23 in early afternoon trading on Monday, as home builder stocks rise due to a two point increase in home builder confidence for August.
The National Association of Home Builders gauges the industry's confidence in present and future single family home sales.
For August confidence reached 55 points, readings over the 50 mark show an optimistic outlook for sales trends, Market Watch reported.
The rise in home builder confidence was due to historically low mortgages and affordable home prices, the National Association of Home Builders told Market Watch.
Separately, TheStreet Ratings team rates HOVNANIAN ENTRPRS INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate HOVNANIAN ENTRPRS INC (HOV) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, unimpressive growth in net income, weak operating cash flow, poor profit margins and feeble growth in its earnings per share."