5 Best Real Estate Stocks to Buy Beyond REITs

2. Toll Brothers, Inc. (NYSE:TOL)

Short float: 3.96%

Number of Hedge Fund Holders: 59

Toll Brothers, Inc. (NYSE:TOL) is one of the 8 Best Real Estate Stocks to Buy Beyond REITs. On May 28, the company announced the opening of its latest luxury townhomes in Alpharetta, Georgia. The project called Emberly- Mariposa Collection offers three-story townhomes with over 2,500 square feet of luxury living space, which are priced from around over $700,000.

On the same day, a luxury homes builder also announced the opening of a new exclusive community in Boulder City, Nevada, called Liberty Ridge. The residential community offers single- and two-story home designs ranging from approximately 2,690 to over 3,600 square feet. Homes in the Windmarch Collection are priced from the high end of $700,000, while those in the Crestfield Collection are priced from the low end of $900,000.

On May 21, RBC Capital reduced its price target on Toll Brothers to $158 from $161 while maintaining an Outperform rating on the stock, according to a report by TheFly. The analyst cited that the company’s second-quarter earnings beat and solid fiscal year guide, with softer orders offsetting better margins. Additionally, RBC Capital said the results also reflect that higher-end buyers remain resilient, with gross margin dynamics heavily influenced by mix, amid a challenging operating environment.

Toll Brothers, Inc. (NYSE:TOL) is engaged in building luxury homes. It also operates its own architectural, engineering, mortgage, title, land development, smart home technology, landscape, and building components manufacturing businesses.