In this article, we will look at the 5 Best Real Estate Stocks to Buy Beyond REITs. Please visit the 8 Best Real Estate Stocks to Buy Beyond REITs if you’d like to see an extended list and methodology behind it.
5. Meritage Homes Corporation (NYSE:MTH)
Short float: 4.91%
Number of Hedge Fund Holders: 43
Meritage Homes Corporation (NYSE:MTH) is one of the 8 Best Real Estate Stocks to Buy Beyond REITs. Based on 13 analyst ratings compiled by CNN, 62% rated the stock Hold, while 38% rated it Buy. The stock currently has an average price target of $80, a 17.44% upside from the current price of $68.12.
On April 28, JPMorgan decreased its price target on Meritage Homes to $58 from $62 while maintaining a Neutral rating on the stock following the company’s first quarter earnings report. Similarly, Keefe Bruyette analyst Jade Rahmani also reduced the price target on Meritage Homes to $75 from $76 while maintaining a Market Perform rating on the stock.
On April 22, Meritage Homes reported a 55% decline in net earnings to $55 million in the first quarter of the year from $123 million in the same period last year, mainly due to lower home closing revenue and gross profit. The company also reported a 17% decline in home closing revenue to $1.1 billion, mainly due to a 13% reduction in closing volume to 2,967 homes, combined with a 5% decrease in average sales price (ASP) to $373,000.
Meritage Homes Corporation (NYSE:MTH) is an American homebuilder that offers energy-efficient and affordable entry-level and first move-up homes.
4. Champion Homes, Inc. (NYSE:SKY)
Short float: 4.90%
Number of Hedge Fund Holders: 36
Champion Homes, Inc. (NYSE:SKY) is one of the 8 Best Real Estate Stocks to Buy Beyond REITs. On May 27, TheFly reported that RBC Capital reduced its price target on Champion Homes to $92 from $101 while maintaining an Outperform rating on the stock following the release of its fourth quarter results.
The analyst cited a more muted outlook for the first quarter, mainly due to recent macro headwinds. Despite near-term demand remaining impacted by the tough macro backdrop and incremental cost pressures, the analyst noted that the firm’s markets remain relatively resilient.
On May 27, Champion Homes reported an 18.4% decline in its net income in the fourth quarter of its fiscal year, which ended March 28, to $29.7 million. For the full fiscal year 2026, the company posted a 4.3% increase to $206.9 million. The company attributed the decline to charges related to the change in fair value of acquisition contingent consideration and product liability true-up.
Champion Homes, Inc. (NYSE:SKY) is a producer of factory-built housing in North America. The company has 46 manufacturing facilities throughout the United States and western Canada with a portfolio of manufactured and modular homes, ADUs, park-models, and modular buildings for the single-family, multi-family, and hospitality sectors.
3. PulteGroup, Inc. (NYSE:PHM)
Short float: 4.42%
Number of Hedge Fund Holders: 47
PulteGroup, Inc. (NYSE:PHM) is one of the 8 Best Real Estate Stocks to Buy Beyond REITs. On May 26, Oppenheimer reiterated its Outperform rating on PulteGroup with a price target of $149, citing the firm’s buyer mix as attractive, according to a report by Investing.com.
Based on 18 analyst ratings compiled by CNN, 50% assigned a Buy rating on PulteGroup’s stock while 39% marked it Hold. The stock has a median price target of $143.50, a 21.85% upside from the current price of $117.77.
For the first quarter of the year, PulteGroup registered a net income of $347 million, or $1.79 per share, lower than $523 million, or $2.57 per share in the same period a year ago. PulteGroup President and CEO Ryan Marshall said the first quarter results reflect the company’s efforts in navigating current market conditions as it works to meet buyer demand. He added:
“Within a demand environment impacted by domestic and global dynamics, we see a consumer with concerns about affordability and the economy, but still desirous of homeownership as demonstrated by the 3% growth in our first quarter net new orders. Given these dynamics, we continue to intelligently manage sales, incentives and production to best position the company for near- and long-term success.”
PulteGroup, Inc. (NYSE:PHM) is an Atlanta-based homebuilding company with operations in more than 45 markets throughout the country. The company has several brands, namely, Centex, Pulte Homes, Del Webb, DiVosta Homes, and John Wieland Homes and Neighborhoods.
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.
1. Corporación Inmobiliaria Vesta, S.A.B. de C.V.(NYSE:VTMX)
Short float: 0.44%
Number of Hedge Fund Holders: 3
Corporación Inmobiliaria Vesta, S.A.B. de C.V.(NYSE:VTMX) is one of the 8 Best Real Estate Stocks to Buy Beyond REITs. On May 26, the company announced that it had entered into two new lease agreements for over 570,000 square feet of land in Monterrey, Mexico.
In a statement, the real estate firm said the two buildings located within the Vesta Park Apodaca industrial park were leased to European firms engaged in industrial manufacturing and the production of industrial equipment linked to critical infrastructure and specialized supply chains.
Vesta said the operations of the two companies will strengthen North America’s industrial ecosystem and contribute to the growth of strategic sectors, particularly those engaged in data center infrastructure. It added:
“With these transactions, Vesta continues to consolidate its position as one of the leading developers of industrial infrastructure in Mexico, driving projects aligned with the trends of digitalization, nearshoring and expansion of industrial capabilities in the region.”
On May 4, Barclays increased its price target on Vesta to $41 from $40 while maintaining an Overweight rating on the stock following the company’s first quarter earnings report. It noted that noting that the company had an “overall strong set of results.” For the first quarter of the year, Vesta reported a 14.4% rise in its rental income to $76.7 million from $67.1 million in the same period a year ago.
Corporación Inmobiliaria Vesta, S.A.B. de C.V.(NYSE:VTMX) is a Mexico-based real estate owner, developer, and asset manager of industrial buildings and distribution centers.
While we acknowledge the potential of VTMX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VTMX and that has 100x upside potential, check out our report about the cheapest AI stock.
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