Homebuilder stocks fall after several downgrades at Barclays

Homebuilder stocks slumped broadly Tuesday, after Barclays downgraded several of them, and reiterated a bearish view on some others, citing concerns that valuations suggest investors may be too optimistic in the face of data pointing to moderating buyer traffic trends. Toll Brothers Inc.'s stock /zigman2/quotes/201912487/composite TOL +4.73% shed 1.6% after analyst Michael Dahl downgraded it to underweight from equal weight, while shares of Lennar Corp. /zigman2/quotes/202536373/composite LEN +5.96% fell 1.5%, PulteGroup Inc. /zigman2/quotes/201694804/composite PHM +4.60% lost 0.6% and TRI Pointe Group Inc. /zigman2/quotes/204302452/composite TPH +6.69% dropped 1.7% after Dahl downgraded them to equal weight from overweight. Shares of KB Home /zigman2/quotes/206220859/composite KBH +3.42% slipped 0.2%, Meritage Homes Corp. /zigman2/quotes/209069331/composite MTH +3.16% gave up 0.8% and Realogy Holdings Corp. /zigman2/quotes/201151464/composite RLGY +3.79% lost 0.3% after Dahl reiterated his underweight ratings. "Our June A.G.E.N.T. Survey indicated moderating buyer traffic trends, warning of risk that near-term catalysts for builders will disappoint relative to rising expectations," Dahl wrote in a note to clients. Separately, CalAtlantic Group Inc.'s stock bucked the sector's trend by rallying 0.8%, after Dahl upgraded it to equal weight from underweight, citing its recent underperformance relative to the group. The iShares U.S. Home Construction ETF /zigman2/quotes/203468436/composite ITB +3.83% , which was down 0.6% in morning trade, has run up 25% year to date, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.34% has gained 8.4% this year.

/zigman2/quotes/201912487/composite

Add to watchlist TOL

Toll Brothers Inc.

US : U.S.: NYSE

$ 33.41

+1.51 +4.73%

Volume: 1.75M

July 14, 2020 4:00p

P/E Ratio

9.82

Dividend Yield

1.32%

Market Cap

$4.01 billion

Rev. per Employee

$1.50M

/zigman2/quotes/202536373/composite

Add to watchlist LEN

Lennar Corp. Cl A

US : U.S.: NYSE

$ 66.29

+3.73 +5.96%

Volume: 3.80M

July 14, 2020 4:00p

P/E Ratio

9.99

Dividend Yield

0.75%

Market Cap

$18.95 billion

Rev. per Employee

$1.77M

/zigman2/quotes/201694804/composite

Add to watchlist PHM

PulteGroup Inc.

US : U.S.: NYSE

$ 35.45

+1.56 +4.60%

Volume: 2.87M

July 14, 2020 4:03p

P/E Ratio

9.29

Dividend Yield

1.35%

Market Cap

$9.09 billion

Rev. per Employee

$1.98M

/zigman2/quotes/204302452/composite

Add to watchlist TPH

TRI Pointe Group Inc.

US : U.S.: NYSE

$ 15.48

+0.97 +6.69%

Volume: 2.11M

July 14, 2020 4:00p

P/E Ratio

9.04

Dividend Yield

N/A

Market Cap

$1.89 billion

Rev. per Employee

$2.27M

/zigman2/quotes/206220859/composite

Add to watchlist KBH

KB Home

US : U.S.: NYSE

$ 30.28

+1.00 +3.42%

Volume: 1.34M

July 14, 2020 4:00p

P/E Ratio

9.40

Dividend Yield

1.19%

Market Cap

$2.65 billion

Rev. per Employee

$2.37M

/zigman2/quotes/209069331/composite

Add to watchlist MTH

Meritage Homes Corp.

US : U.S.: NYSE

$ 79.55

+2.44 +3.16%

Volume: 310,703

July 14, 2020 4:00p

P/E Ratio

10.50

Dividend Yield

N/A

Market Cap

$2.90 billion

Rev. per Employee

$4.61M

/zigman2/quotes/201151464/composite

Add to watchlist RLGY

Realogy Holdings Corp.

US : U.S.: NYSE

$ 7.12

+0.26 +3.79%

Volume: 1.30M

July 14, 2020 4:00p

P/E Ratio

N/A

Dividend Yield

0.00%

Market Cap

$791.45 million

Rev. per Employee

$533,246

/zigman2/quotes/203468436/composite

Add to watchlist ITB

iShares U.S. Home Construction ETF

US : U.S.: Cboe BZX

$ 45.86

+1.69 +3.83%

Volume: 3.45M

July 14, 2020 4:00p

/zigman2/quotes/210599714/realtime

Add to watchlist SPX

S&P 500 Index

US : S&P US

3,197.52

+42.30 +1.34%

Volume: 2.63B

July 14, 2020 5:13p