Homebuilding Stocks in U.S. Have ‘Compelling Valuations’

Homebuilding stocks in the U.S. offer “compelling valuations” as well as an opportunity to benefit from low interest rates, according to David Rosenberg, Gluskin Sheff & Associates Inc.’s chief economist and strategist. He cited the builders’ relatively low price-earnings ratio in a report Tuesday. The S&P 500 Homebuilding Index was 29 percent cheaper than the S&P 500 as of Monday, according to a comparison of P/E data compiled by Bloomberg. Three years ago, the industry group was 35 percent more expensive.