On CNBC's "Trading Nation," Quint Tatro of Joule Financial said he would be a buyer of the housing stocks. The strength, in the midst of the negative housing starts numbers and building permit numbers, is an indication that there is a lot of upside opportunity.
His top pick in the space is Lennar Corporation LEN, which trades at 1.5 times its book value and just about nine times its forward earnings. The company has an exceptional balance sheet, said Tatro.
Delano Saporu of New Street Advisors said the sector is an interesting area to watch. He likes D. R. Horton Inc DHI and Lennar in the space.
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