XHB: Big Week On Tap For Struggling Homebuilders

  • I maintain a buy rating on XHB despite a tough 2025, citing its attractive valuation and potential technical turnaround signals. Homebuilder sentiment is near historic lows and mortgage rates remain stubbornly high, weighing on sector performance and investor confidence. XHB's cheap valuation—just over 13x earnings and a PEG below 1.5—offers a compelling entry point for contrarian investors.