SmarTrend: Cavco Future Foggy?

Futures and Commodity Market News reports that SmarTrend, that inveterate follower of 5,000 stocks daily, says Cavco Industries (NASDAQ:CVCO) has the lowest Forward Earnings Yield (FEY) in the homebuilding industry. Based on projected earnings for the year, Cavco is at 0.11% FEY, followed by Meritage (NYSE:MTH) at 0.14%, and Toll Brothers (NYSE:TOL) at 1.04%. DR Horton (NYSE:DHI) ranked fourth lowest with FEY of 2.47% and Lennar (NYSE:LEN), the best of the lowest, at 3.18% estimated Forward Earnings Yield. The FEY is a useful tool to measure the comparative value of assets.

(Graphic credit: Cavco)

 

2 thoughts on “SmarTrend: Cavco Future Foggy?”

  1. FEY is a simple measure that takes very little specifics into consideration. Of course the MH industry is struggling and earnings are unpredictable.  but the MH industry has more chance of coming out of this recession earlier and faster than site builders.  Cavco is well positioned to prosper when the economy shows some signs of improvement but no one can predict when that will be.

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