Hobson: Is Trouble Looming for Housebuilders?

THE WEEK: Morningstar columnist Rodney Hobson says the good times enjoyed by housebuilder shares could be coming to an end

Rodney Hobson 15 June, 2018 | 2:17PM

Bellway Homes

As the financial world started to recover from the 2008 collapse, this column argued consistently for several years that every portfolio should include at least one housebuilder – mine has three. Despite the recent slide in shares in the sector, it is increasingly hard to argue that housebuilders are still cheap. We have potentially reached the end of this particular road.

Shares in housebuilders, particularly Barratt Developments (BDEV) which I hold, bounced last week after a broker’s note suggesting that the slide in shares since last October had gone too far. This proved a deadcat bounce when Crest Nicholson (CRST) rang alarm bells this week.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Barclays PLC94.97 GBX3.74
Barratt Developments PLC472.70 GBX3.89
Bellway PLC2,343.00 GBX4.13
Berkeley Group Holdings (The) PLC4,309.00 GBX4.16
Crest Nicholson Holdings PLC188.70 GBX5.18
HSBC Holdings PLC306.95 GBX8.33
Lloyds Banking Group PLC25.73 GBX4.09

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies