One of my favorite sectors right now is the homebuilding market. Shares of KB Home (KBH) exploded higher on Tuesday by nearly 10% after a stellar earnings report. The spring selling season is likely to be quite strong.
Interestingly, chemical company DuPont (DD) mentioned in its earnings report an expectations of 20% growth in housing in 2014.
Mohawk Industries (MHK) is primed to benefit from strength in housing. Even before January this stock was cheap relative to expected profit growth. Today it is 5% cheaper. Analysts expect the company to grow profits by 27% in 2014. At current prices shares trade for 17 times 2014 estimated earnings. Mohawk is an easy January dog to buy during this recent pullback.