Existing home sales came out stronger than expected today, but still up only 1.5% y-o-y. The March number, up 5.1% m-o-m, partially reverses the weak February number.
I still like the construction related stocks, AYI & APOG. This report doesn't change my view. If home sales weakens further, I will have to reassess this positioning, but for now I am staying bullish on construction as a growth driver.
Mediocre housing starts data released yesterday.
Weak permits as well.
Michael Grove, CFA