15 Small-Cap Construction and Materials Stocks Hedge Funds Are Buying

1. Lennar Corporation (NYSE:LEN)

Market Capitalization as of April 28: $28.07 billion

Number of Hedge Fund Holders: 70

Lennar Corporation (NYSE:LEN) operates as a homebuilder in the US. Its homebuilding operations include the construction and sale of single-family attached & detached homes. It also engages in the purchase, development, and sale of residential land, along with the development, construction, and management of multifamily rental properties.

Lennar’s Homebuilding segment had 17,834 homes delivered in Q1 2025. This volume was achieved by matching the company’s production pace with sales, which resulted in 18,355 homes sold and 17,651 homes started. While the average sales price net of incentives declined by 1% year-over-year to $408,000, Lennar drove volume in a challenging market by increasing sales incentives to ~13%.

The company also grew its community count from 1,447 in Q4 2024 to 1,584 in Q1 2025, which included the acquisition of Rausch Coleman. Lennar Corporation (NYSE:LEN) now expects to sell between 22,500 and 23,500 homes and deliver between 19,500 and 20,500 homes in Q2, with an anticipated average sales price of $390,000 to $400,000.

While we acknowledge the growth potential of Lennar Corporation (NYSE:LEN), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than LEN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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

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