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Who's next after Home Depot's billion dollar buy-back?

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A happy day for Home Depot shareholders, who can look forward to a USD 18 billion share buyback after the company posted fourth quarter profits that topped analysts’ estimates. Serge Berger takes a look at other companies set to gain from the rising US housing prices and how to trade them.

Home Depot, the largest US home-improvement retailer, is seen as a leading indicator for the US housing market, which has seen rising prices. 

Serge Berger, also known as the Steady Trader, believes US home builders like DR Horton, Pulte Homes and Toll Brothers are next in like to benefit from the boom in US housing. From a pricing perspective, they have traded more or less flat since 2013 and look set to catch up, says Serge Berger.

Rather than cherry pick individual stocks, Serge would look at an ETF as a way to invest in the US housing market boom. ETFs like XHB, ITB include US home builders such as like DR Horton and Toll Brothers.