DHI - Beazer Homes: Value Play Or Value Trap?

2024-02-06 04:14:54 ET

Summary

• Beazer Homes performed well in 2023 despite a challenging year for existing home sales and high mortgage rates.
• Headwinds seem to be building for the home building sector, but BZH sells for less than seven times earnings and has a solid balance sheet.
• An analysis around Beazer Homes stock follows in the paragraphs below.

Security is always excessive until it's not enough ." - Robbie Sinclair

Today, we put Beazer Homes ( BZH ) in the spotlight. One of the many perplexing things in the market in 2023 was how well home builder stocks performed in light that existing home sales for the year posted their lowest levels since 1995. New home sales did rise four percent on the year it should be noted. Home builders also benefited from lower input costs such as lumber as inflation pressures ebbed. In addition, low inventory levels keep average home prices high even with over seven percent average 30-Year mortgage rates for most of the year....

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