PFSI - Why These Top Real Estate Stocks Fell by Double Digits in October
Shares of residential mortgage lender PennyMac Financial Services (NYSE: PFSI) and homebuilders/financers D.R. Horton (NYSE: DHI) and Meritage Homes (NYSE: MTH) all fell by more than 10% in October, according to data provided by S&P Global Market Intelligence . That was much worse than the S&P 500 , which sank only 2.8% during the month.
D.R. Horton -- the largest homebuilder in the U.S. by number of homes sold -- had the smallest decline, with shares "only" down 11.7%. PennyMac's stock fared slightly worse, down 12.6%. Meritage Homes got hammered, though, tumbling 21.1%.
It was a rare month of underperformance during 2020, which has been a stellar year for real estate-related stocks. Even with October's sell-offs, all three stocks are up big. So far this year, D.R. Horton's shares are up 38.3%, Meritage's are up 58.4%, and PennyMac's have soared an amazing 67.3%, compared with an 8.7% year-to-date gain for the overall S&P 500.
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Why These Top Real Estate Stocks Fell by Double Digits in October