5 Best Home Builder Stocks To Buy Now

In this article, we discuss 5 best home builder stocks to buy now. If you want to see more stocks in this selection, check out 10 Best Home Builder Stocks To Buy Now. 

5. Advanced Drainage Systems, Inc. (NYSE:WMS)

Number of Hedge Fund Holders: 26

Advanced Drainage Systems, Inc. (NYSE:WMS) was incorporated in 1966 and is headquartered in Hilliard, Ohio. The company designs, manufactures, and markets thermoplastic corrugated pipes, water management products, and drainage solutions for underground construction in the United States, Canada, Mexico, and internationally. The company offers its products for non-residential, residential, agriculture, and infrastructure applications. It is one of the best home builder stocks to buy now. 

Baird analyst Michael Halloran on August 5 raised the price target on Advanced Drainage Systems, Inc. (NYSE:WMS) to $170 from $119 and maintained an Outperform rating on the shares. The analyst said underlying demand remains resilient, with solid volumes expected through 2023 helped by high backlog levels, market share gains, capacity additions, and a suitable end market mix potentially supporting 2024 revenue growth. On August 17, Deutsche Bank analyst Joe Ahlersmeyer initiated coverage of Advanced Drainage Systems, Inc. (NYSE:WMS) with a Buy rating and a $182 price target.

According to Insider Monkey’s data, 26 hedge funds were bullish on Advanced Drainage Systems, Inc. (NYSE:WMS) at the end of June 2022, up from 23 funds in the prior quarter.  

Here is what ClearBridge Mid Cap Growth Strategy Fund has to say about Advanced Drainage Systems, Inc. (NYSE:WMS) in its Q2 2022 investor letter: 

“While IT is traditionally considered the bastion of growth opportunities and continues to remain our largest absolute weighting in the portfolio, only three of the portfolio’s top 10 performers this quarter were in IT, with select names in the cyclical industrials and defensive health care sectors among the leading contributors. These included a new addition Advanced Drainage Systems (NYSE:WMS) in the industrial sector. Advanced Drainage Systems manufactures and markets thermoplastic pipes, water management products and drainage solutions for use in construction and infrastructure. We believe Advanced Drainage Systems will benefit from a progression within the construction industry away from concrete toward recycled plastic; it also has a deep competitive moat as the only plastic player of scale.”