5 Best Home Builder Stocks To Buy Now

Below we present the list of 5 Best Home Builder Stocks To Buy Now. For our methodology and a more comprehensive list please see 11 Best Home Builder Stocks To Buy Now.

5. PulteGroup, Inc. (NYSE:PHM)

Number of Hedge Fund Shareholders: 36

Hedge fund ownership of PulteGroup, Inc. (NYSE:PHM) sank by 46% during the first half of 2022 but has since made up all of those declines over the past three quarters. Louis Bacon’s Moore Global Investments and Dmitry Balyasny’s Balyasny Asset Management were among the prominent funds to add PHM to their 13F portfolios over the past three quarters.

PulteGroup, Inc. (NYSE:PHM)’s gross orders rose by 1% year-over-year in Q1 to 8,898 homes, though net new orders fell by 8% to 7,354 homes. The dollar value of net new orders fared even worse, slumping by 20% to $3.8 billion. PulteGroup had a backlog of 13,129 homes at the end of Q1 with a value of $8 billion. While selling prices were down in Q1, lower expenses resulted in improved margins, which drove an earnings beat during the quarter.

Miller Value Partners discussed PulteGroup, Inc. (NYSE:PHM)’s performance during the financial crisis and how its fundamentals ultimately prevailed in the fund’s Q2 2022 investor letter:

“Homebuilders and financials, the worst losers during the Financial Crisis crash, plummeted. Some homebuilders, like PulteGroup, Inc. (NYSE:PHM), traded down to half their financial crisis lows despite reporting housing improvements for the first time. Fear ruled in the short term, but fundamentals ultimately prevailed. Homebuilders were top performers in 2012 posting triple-digit increases in some cases. Opportunity Equity was a top performer that year.”