5 Housing Stocks to Watch

In this article, we discuss 5 housing stocks to watch. If you want our comprehensive analysis of the housing market, go directly to Housing Market Predictions for 2022 and 10 Stocks to Watch. 

5. Opendoor Technologies Inc. (NASDAQ:OPEN)

Number of Hedge Fund Holders: 41

Opendoor Technologies Inc. (NASDAQ:OPEN) is an online real estate company that primarily lists residential properties for sale and purchase. Opendoor Technologies Inc. (NASDAQ:OPEN) is a low margin, asset intensive business that can succeed in the current housing market. 

Keefe Bruyette analyst Ryan Tomasello on February 14 initiated coverage of Opendoor Technologies Inc. (NASDAQ:OPEN) with a Market Perform rating and a $13 price target. The growing adoption of public real estate technology offers exposure to “various secular themes tethered to the digitization of real estate – the world’s largest asset class”, according to the analyst, who is bullish on technology adoption across the real estate industry. However, he said “idiosyncratic risks coupled with an unforgiving macro backdrop for high-growth, low-profitability stories warrant a selective approach”.

In its Q1 2022 guidance, posted on February 24, Opendoor Technologies Inc. (NASDAQ:OPEN) expects a revenue of $4.1 billion-$4.3 billion. In Q4 2021, its inventory balance of 17,009 homes, representing $6.1 billion in value, rose 1208% year-on-year.

Daniel Patrick Gibson’s Sylebra Capital Management held the largest position in Opendoor Technologies Inc. (NASDAQ:OPEN) as of Q4 2021, with 19.7 million shares worth $289 million. Overall, 41 hedge funds were bullish on the stock in the fourth quarter of 2021. 

Here is what Baron Funds has to say about Opendoor Technologies Inc. (NASDAQ:OPEN) in its Q2 2021 investor letter:

“Following exceptionally strong share price performance in 2020 and early in 2021, the shares of Opendoor Technologies Inc. declined sharply in the last few months. Opendoor provides a digital platform for residential real estate that allows for the purchase and sale of homes on a mobile device. The company generated $2.5 billion of revenues last year, and management, who we have high regard for, believes there is a path to growing revenues to $50 billion over time!

At its recent price of $17 (versus a peak price of $36 in February), we believe the shares are attractively valued and offer compelling upside in the next few years.”