Zacks Analyst Blog Highlights: D.R. Horton, Beazer and Pulte.

CHICAGO -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: D.R. Horton (NYSE: DHI), Beazer (NYSE: BZH) and

See the latest posts to the Analyst Blog by visiting: http://at.zacks.com/?id=2673

Here are highlights from Wednesday's Analyst Blog:

Not a Pretty Housing Picture

In a sense, the decline in starts and permits can be seen as good news. After all, if you find yourself in a hole, don't start digging new foundations. The housing market is in a very deep hole, and we are nowhere close to the bottom. With inventories at near record highs, perhaps the best thing that could happen would be for housing starts to fall to zero for a few months. That's not going to happen, however. Housing will continue to be a drag on the overall economy, and it is unlikely that the Fed rate cuts will solve the problem.

The underlying problem is that housing prices are just too high by historical standards (see my most recent strategy report, or there is a very good article on the front page of the New York Times Business section on the subject today). Perhaps if the rate cuts really get inflation fires stoked up, the decline in nominal prices for houses will not be that bad, but the cost would be sharply higher mortgage rates. While homebuilding stocks like D.R. Horton (NYSE: DHI), Beazer (NYSE: BZH) and Pulte (NYSE: PHM) have soared in response to the Fed cut, they still face many quarters, if not years of tough sledding in front of them. I would use this as a chance to get out of those stocks if you have not already.

See the latest posts to the Analyst Blog by visiting http://at.zacks.com/?id=2645

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