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.

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http://www.investopedia.com/stock-analysis/2012/Lennar-Rebuilding-But-Valuation-Overbuilt-LEN-DHI-PHM-KBH0925.aspx

Investopedia: Toll Teetering

Back in June, I was cautiously optimistic on the shares of Toll Brothers (NYSE:TOL), provided that "the economy does not slide back into recession". Nowadays, that concern is looking more ominous, and uncertainties seem to be weighing on consumer sentiment. Toll Brothers is still the best property on the homebuilding block, but these days that may be like asking investors to choose between a haunted house designed by Disney and one designed by Lovecraft. Sure, there's a difference but they're both still haunted houses.


Not a Lot of Good News in the Third Quarter  
Toll Brothers reported revenue of $394 million for the third quarter, down about 13% in dollar terms from the year-ago level. Undercut by a 14% drop in units, Toll Brothers actually missed the average analyst guess, but investors should note that there was a pretty wide spread for revenue estimates, which certainly befits the uncertain state of housing.

Read the full piece at Investopedia:
http://stocks.investopedia.com/stock-analysis/2011/Toll-Teetering-TOL-PHM-DHI-HOV-BZH-KBH0825.aspx