NEW YORK (TheStreet) --Shares of Hovnanian Enterprises (HOV) are gaining by 1.31% to $2.70 in mid-morning trading on Monday, as home builder stocks get a boost from the rise in confidence for the month of June.
Data from the National Association of Home Builders/Wells Fargo showed confidence among home builders spiked by five points to 59 in June, a nine-month high, MarketWatch noted.
Economists were expecting the confidence gauge to show a reading of 55.
Readings above the 50 mark indicate that home builders are encouraged by sales trends.
Based in Red Bank New Jersey Hovnanian Enterprises designs, constructs, markets, and sells single family detached homes, attached townhomes and condominiums.
Other home builder stocks on the rise today include Lennar Corp. (LEN), up by 1.03% to $47.96, M.D.C Holdings, (MDC), higher by 2.64% to $29.50 and D.R. Horton (DHI) up by 0.82% to $26.93 this morning.
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 a number of negative factors, 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 unimpressive growth in net income, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."