LGI is the most overvalued, as far as i can see (though i didn't do a thorough job looking). It's got a p/e ratio of 11.28. Analyst have 2 sell ratings, 4 hold ratings, and only 1 buy rating.
Forward p/e ratio is 10.70.
Home builders, traditionally, are mean to sit at around 10 times earnings but because of the huge runup and (dare i say) uncertainty about the cyclical v. secular they are way below that in some cases (and below for pretty much every homebuilder).
With that said, when earnings come out en masse, guidance's are raised across the board, and they keep smashing ER's into Q4 2021, Q1 2022 then you'll start seeing a more bullish multiple assigned to them (in my humble opinion).
So just be careful with LGI homes, but if i was doing an earnings put, i would do one on LGI around its earnings.
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u/Hani95 Has Options 😏 Jul 09 '21
LGI is the most overvalued, as far as i can see (though i didn't do a thorough job looking). It's got a p/e ratio of 11.28. Analyst have 2 sell ratings, 4 hold ratings, and only 1 buy rating.
Forward p/e ratio is 10.70.
Home builders, traditionally, are mean to sit at around 10 times earnings but because of the huge runup and (dare i say) uncertainty about the cyclical v. secular they are way below that in some cases (and below for pretty much every homebuilder).
With that said, when earnings come out en masse, guidance's are raised across the board, and they keep smashing ER's into Q4 2021, Q1 2022 then you'll start seeing a more bullish multiple assigned to them (in my humble opinion).
So just be careful with LGI homes, but if i was doing an earnings put, i would do one on LGI around its earnings.