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10 Best S&P Stocks So Far in 2012

Homebuilders blow up through Q3. Will it last?

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#4: Lennar

Lennar Corp. (NYSE: LEN)YTD Performance: +86%

Another homebuilder on this list is Lennar (NYSE:LEN). Like the aforementioned D.R. Horton (NYSE:DHI), this company has benefited from the perception of a bottom in housing and a strong rebound in its fundamentals.

Consider it just reported EPS of $2.06 for its fiscal Q2, when previous forecasts were for roughly 97 cents a share for the current fiscal year. That’s certainly reason for investors to be enthusiastic.

It’s also worth noting that new housing starts and existing home sales both rose in August, and pricing remains firm nationwide. So this trend could very well continue into 2013 if you believe a housing bottom has been established.

It adds up to a favorable environment for DHI, Lennar and other builders and has resulted in outsized performance year-to-date.

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