Evercore upgrades PulteGroup and Toll Brothers on historic buy signal amid sector lows

Evercore ISI upgraded homebuilders PulteGroup and Toll Brothers to Outperform, citing a historic buy signal as their stocks trade near lows below 0.8 times tangible book value. This suggests the market has overly priced in sector distress, presenting a buying opportunity. PulteGroup shows resilience with stable orders and a low P/E ratio, while Toll Brothers benefits from luxury market strength and strong recent earnings. Both companies aim to grow community counts despite current challenges, with potential catalysts including improved mortgage rates or consumer confidence.