As the housing market has defied the economic slump, so have the stocks of homebuilders, home-renovation stores and mortgage lenders. But is it time to dump these stocks? Fund manager Ron Muhlenkamp says Lowe's, whose stock has risen 42% in the past 12 months, no longer looks like a bargain. Ditto for sub-prime lenders like Countrywide, which may be hit hard by the upturn in mortgage delinquencies, says portfolio manager David Dreman. However, Dreman says, big lenders such as Fannie Mae, which have less exposure to risky credit, should continue to perform well. Homebuilder stocks such as Centex and Pulte Homes...
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