Zacks.com Features the Following Top Stocks in the Home Construction Industry: D.R. Horton, Masco Corporation, Pulte Homes, and Toll Brothers

Business Wire, July 12, 2004

CHICAGO -- Despite rising rates, the home construction industry remains strong, and the All Stars have four recommendations to give your shelter in a changing market environment. Here are some of the top recommendations in the home construction industry: D.R. Horton, Inc. (NYSE:DHI), Masco Corporation (NYSE:MAS), Pulte Homes, Inc. (NYSE:PHM) and Toll Brothers, Inc. (NYSE:TOL). Discover the full story at Zacks.com http://at.zacks.com/?id=96

What Do The All Stars Recommend:

D.R. Horton, Inc. (NYSE:DHI) is engaged in the construction and sale of high quality homes designed principally for the entry-level and first time move-up markets. The company also provides mortgage financing and title services for homebuyers through its mortgage and title subsidiaries. Earlier this week, D.R. Horton reported fiscal third quarter net sales orders at $3.2 billion, marking a 23% increase from last year's $2.6 billion. That accounts for 12,444 homes vs. 10,811 homes last year. The company said all of its regions produced double-digit sales dollar increases. It also stated that continued sales momentum and record backlog ensure that fiscal 2004 with be its 27th straight year of record revenues and profitability. D.R. Horton will report is fiscal third quarter results on July 21st.

Masco Corporation (NYSE:MAS) is one of the word's leading manufacturers of home improvement and building products, as well as a leading provider of services that include the installation of insulation and other building products. The company said sales and earnings from continuing operations are exceeding its expectations, and forecasted second quarter earnings above the consensus at 58 cents to 60 cents per common share. The company had previously predicted earnings between 50 cents and 53 cents per common share. Strong end-market demand and share gains helped make the upward revision possible. As for its first quarter, Masco put together a robust performance thanks to market share gains, new products, and positive economic conditions. Earnings advanced past the consensus while net sales from continuing operations reached $2.8 billion, which was 19% ahead of last year.

Pulte Homes, Inc. (NYSE:PHM) is a publicly held holding company whose subsidiaries engage in the homebuilding and financial services businesses. In late April, the company reported first quarter earnings of $1.02 per diluted share from continuing operations on consolidated revenues of $2.04 billion. The earnings result was 20% in front of the consensus while revenues jumped by 31%. Furthermore, domestic net new home orders rose by 31% to 10,751 vs. orders of 8,233 homes last year. The ending backlog was valued at $5.4 billion, compared to $3.6 billion last year, or 17,664 homes vs. 13,053 homes. Pulte Homes will report its second quarter results on July 26th.

Toll Brothers, Inc. (NYSE:TOL) builds luxury single-family and attached home communities and master-planned luxury multi-product residential resort-style golf communities principally on land it develops and improves. Toll Brothers enjoyed a number of record results for its fiscal second quarter, which was announced in late May. Excluding items, the company earned 95 cents per diluted share in the quarter, which topped the consensus by more than 9% while also marking a solid improvement from the year-ago total of 72 cents. Revenues rose 35% to $819.5 million from $607.9 million. Toll Brothers' second quarter contracts reached a record of $1.6 billion, or 2,600 homes, growing by 73% year-over-year from $926.5 million, or 1,667 homes. In addition, backlog of $3.74 billion, or 6,225 homes, was also the highest in its history and marked a 69% improvement over last year's $2.21 billion, or 3,937 homes.

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