Beazer Homes USA, Inc. (BZH), KB Home (KBH), Hovnanian Enterprises, Inc. (HOV): We’d Like To Welcome You To This New ‘Poorhouse’

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Its P/E is a reasonable 11.73 and has a 1.06 PEG. In an unusual upgrade Barclays took Toll Brothers Inc (NYSE:TOL) from Underweight directly to Overweight on April 23. Analysts expect 39.17 five year growth and have a price target of $36.00 for less than 10% upside.

Toll Brothers has a positive return on equity of 17.21% and a profit margin of 24.90%. The stock is up 34.84% over the last year.

The co-founder Toll brothers, Robert and Bruce, hold over $10.5 million shares between them. With a strong show of conviction by founders, great growth rate, low PEG (although not undervalued), and exposure to clients who have the means and the credit available to buy, Toll Brothers Inc (NYSE:TOL) is the best of these homebuilders.

A Bleak House picture

It is beginning to sound a bit doomsdayish and Dickensian for Millennials. The student debt problem isn’t going away, not when universities raise tuition by double digits. The best thing to do as an investor is not to lose money in these starter homebuilders and make money elsewhere for a college fund. Don’t forget to clear out that spare room for the recent college grad moving back home.

The article Welcome to the New American Poorhouse originally appeared on Fool.com.

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