If Thursday's move into real estate stocks is reflective of a bigger trend, there's still time to make winning investments in the housing sector. The SPDR S & P Homebuilders ETF (XHB) and the iShares U.S.
Home Construction ETF (ITB) both ended the week more than 10% higher. That marked both of their best weeks in 2024. A large chunk of those gains came Thursday, as investors assumed the consumer price index reading could give the Federal Reserve justification to start cutting interest rates.
As big technology stocks tumbled, traders jumped into real estate-connected holdings on a hunch that the sector would benefit from a lower-rate environment. If this week is any indication of what to expect going forward, stocks tied to homebuilding could be in for more upside. Due to this, CNBC Pro screened for the most-loved names among this group.
To find them, CNBC Pro looked for stocks in either of the exchange-traded funds that had buy ratings from at least 55% of analysts and an average price target suggesting upside of at least 10%. Here are the five that made the cut, according to FactSet data as of Thursday night: Homebuilder Toll Brothers passed the screen. Exactly 55% of analysts rate the stock a buy, with an average price target showing shares can rise close to 15%.
It has been a solid year for the stock, with shares up about 20% in 2024. Wells Fargo analyst Sam Reid named Toll Brothers his top builder pick due in part to its status as a structural share gainer and its histori.