5 Best Home Builder Stocks To Buy Now

4. Carlisle Companies Incorporated (NYSE:CSL)

Number of Hedge Fund Holders: 30

Another notable home building stock to consider is Carlisle Companies Incorporated (NYSE:CSL), an Arizona-based diversified manufacturer of engineered products. The Carlisle Construction Materials segment manufactures single-ply roofing products, rigid foam insulations, spray polyurethane foam, architectural metal products, waterproofing products, and air and vapor barrier systems for commercial, industrial, and residential buildings. On August 4, Carlisle Companies Incorporated (NYSE:CSL) declared a $0.75 per share quarterly dividend, a 38.9% increase from its prior dividend of $0.54. The dividend was paid on September 1. 

On October 14, Credit Suisse analyst Daniel Oppenheim upgraded Carlisle Companies Incorporated (NYSE:CSL) to Outperform from Neutral with a $363 price target. Oppenheim expects Carlisle Companies Incorporated (NYSE:CSL) to be a beneficiary of the positive secular trend of higher building efficiency, which should add to demand for its commercial roofing and waterproofing offerings, the analyst told investors in a research note. He believes Carlisle Companies Incorporated (NYSE:CSL) provides attractive secular growth in a backdrop consisting of slowing demand in building products.

According to Insider Monkey’s Q2 data, 30 hedge funds were long Carlisle Companies Incorporated (NYSE:CSL), compared to 29 funds in the prior quarter. David Blood and Al Gore’s Generation Investment Management is the leading position holder in the company, with 1.7 million shares worth $408 million. 

Here is what Polen Global Growth has to say about Carlisle Companies Incorporated (NYSE:CSL) in its Q2 2022 investor letter:

“CSL’s recent update indicated that the worst COVID-19 impacts on the business are likely past, with plasma collections now snapping back. CSL’s core business continues to enjoy significant competitive advantages, in our view, and, as collected plasma is processed into finished products, we believe sales will return to their pre-COVID-19 levels. It will take time for this to play out, but it is a welcome improvement. Most of the other segments of the business are performing well, and steady demand for CSL’s products, which are less economically sensitive, has likely contributed to the stability of shares recently.”