Investopedia: Lennar Rebuilding, But Valuation Overbuilt
Homebuilders have already had a heck of a run over the last year, with names like Toll Brothers (NYSE:TOL), DR Horton (NYSE:DHI) and Lennar (NYSE:LEN)
all up more than 125% over the last year and up many times over from
the lows in the late fall of 2008. What concerns me is whether these
moves have already discounted a lot of the early gains from the nascent
housing recovery - setting up the possibility that housing activity (and
prices) could continue to improve without necessarily taking the
homebuilder stocks with them.