10 Most Undervalued Real Estate Stocks To Buy According To Analysts

Page 9 of 9

1. Forestar Group Inc. (NYSE:FOR)

Average Upside Potential: 44.76%

Forward P/E: 6.22

Number of Hedge Fund Holders: 16

Forestar Group Inc. (NYSE:FOR) is one of the largest residential community developers in the United States which primarily acquires entitled real estate and develops it into finished residential lots for sale to homebuilders. Forestar is a majority-owned subsidiary of D.R. Horton.

Forestar’s strategic relationship with D.R. Horton, one of the largest American homebuilders, presents it with significant built-in demand for current and future lot deliveries. The firm is more geographically diversified than most homebuilders with operations in 62 markets across 24 states and 106,000 lots controlled as of December 31, 2024. During the 12-month period ended December 31, Forestar successfully delivered over 14,200 residential lots.

As a highly differentiated, pure-play, residential lot developer for the affordably priced single-family home market, Forestar is uniquely positioned to benefit from the shortage of finished lots in the homebuilding industry. The firm plans to invest $2 billion in land acquisition and development in fiscal 2025. Over the last five years, Forestar invested nearly $6.7 billion in land acquisition and development and delivered over 70,000 finished lots to local, regional, and national homebuilders.

While we acknowledge the potential of FOR as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued AI stock that is more promising than FOR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. 

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 9 of 9