5 Best Get Rich Quick Stocks To Buy

4. Builders FirstSource, Inc. (NYSE:BLDR)

Number of Hedge Fund Holders: 49

Builders FirstSource, Inc. (NYSE:BLDR) is a Dallas, Texas-based manufacturer and supplier of building materials. The company, founded in 1998, is a member of the Fortune 500 companies and is the biggest supplier of structural building products in the US.

On November 28, Builders FirstSource, Inc. (NYSE:BLDR) announced a share buyback plan of $1 billion that has increased the company’s overall share buyback plan to $1.5 billion. This is equivalent to 16% of the current market capitalization of the company. Builders FirstSource, Inc. (NYSE:BLDR) was assigned a target price of $80 along with an Outperform rating by David Manthey at Baird on November 17. The analyst highlighted that the organic growth remained strong for the company during Q3 2022. Despite the mortgage rate surpassing the 7% level, the growth prospects of Builders FirstSource, Inc. (NYSE:BLDR) remain strong.

Here’s what Praetorian Capital said about Builders FirstSource, Inc. (NYSE:BLDR) in its Q3 2022 investor letter:

“Builders FirstSource, Inc. (NYSE:BLDR) produces and distributes building materials, primarily for the home building industry. It trades at a low-single digit cash flow multiple on recent earnings and is using that cash flow to rapidly repurchase shares. One could say that the low multiple is due to peak cyclical earnings. I take a different view and believe that we’re in the early stages of a long-term housing boom caused by migration to low tax states along with a catch-up phase as home construction rates were below trendline over the past decade. I believe that the US needs in excess of 1 million new single-family homes each year, just to provide for population growth, ignoring the other factors. As a result, this business does not appear to be at peak earnings; instead, I believe we are seeing a new baseline for earnings—though the earnings will be quite volatile—particularly if interest rates remain elevated or increase further.”