Value Investors: Buy Housing Now: RYL, MTH, MDC

Housing stocks were the darling of 2012 and started off 2013 on a hot streak. But in May, the stocks peaked and it's been downhill ever since even though many of the homebuilders have reported better than expected earnings and the year over year earnings growth is expected to be phenomenal.

What gives?

The homebuilders are a classic case of what was once hot is now not.

But the sell off has created an opportunity for the savvy value investor.

In May, many were concerned about excessive valuations of the homebuilders as they hit new highs, but that's not the case now that the stocks have plunged. Far from it.

There's plenty of value to be found in many of the homebuilders. Not only that, you can get double digit earnings growth and an attractive Zacks Rank.

If you loved the homebuilder stocks as they were going up just a few months ago, now's your chance to get them while they're cheap.

Homebuilders are Confident

If anything, the fundamentals in the sector have actually improved since the stocks peaked in the spring.

On Aug 15, the Homebuilders Confidence Index hit an 8-year high as it rose to 59 from 56 in July. The homebuilders haven't been this confident since the housing boom and bubble years. (more)

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