Homebuilder Toll Brothers (TOL) reports earnings Monday after the close. Lennar (LEN) will report on Wednesday after the close. Interestingly, none of the three homebuilders that have outperformed since their reported earnings cater to the median home buyer. The average post-earnings price change for the ten homebuilders with average selling prices between $350,000 and $560,000, much closer to the median home price, is -9.4%. TOL is trading at 11.3 times forward earnings versus 10.2 times for LEN, a slight premium I believe is justified.

---

Persons: LEN, they've, Taylor Morrison, Toll, TOL, TOL LEN Organizations: Cavco Industries, Champion Homes, Toll Brothers, Toll, CNBC, NBC UNIVERSAL Locations: United States