In this article, we will take a look at the List of Homebuilder Stocks Sorted By Hedge Fund Sentiment.
The home-building sector has been under pressure over the past few years, a situation fueled by elevated inflation and mortgage rates. Oversupply following a period of overbuilding, as mortgage rates began rising, is another headwind homebuilders have had to contend with.
Homebuilders have also had to find a balance between increasing incentives to boost sales and protecting profitability in the race to stay afloat. However, recent developments suggest a potential recovery. Government data shows that construction of new homes in the US edged higher 6.2% in December to the highest level in five months.
The iShares US Home Construction ETF is already up by 3.17% for the year, affirming a build-up in momentum around home builder stocks. According to Oppenheimer technical analyst Ari Wald, homebuilders have historically acted as early-cycle leaders. This means the sector tends to move first, and the broader stock market will follow.
Oppenheimer’s Wald wrote that, for now, “the weight of the market evidence remains constructive” for the home-builder sector, but he also noted that it remains “underappreciated” on Wall Street.
Josh Brown and Sean Russo of Ritholtz Wealth Management have also touted homebuilder stocks as ideal investment plays, given that their growth is not susceptible to AI-related disruption. According to Brown, the US remains underbuilt by an estimated 3 to 4 million homes, presenting tremendous opportunities.
“This year, price is telling a very different story than it has in recent years. Not only is the technology sector lagging the S & P 500, it’s underperforming eight other sectors as well. So where are the winners? The State Street S & P Homebuilder ETF (XHB) just cleared its September 2025 high, reaching levels not seen since December 2024,” Brown said.
As activity in the U.S. housing market picks up, this is one of the best times for investors to consider the homebuilding sector as a diversifier amid the premium valuation in the overall equity market. The positive momentum around home builder stocks is likely to continue as the Federal Reserve lowers interest rates and mortgage rates continue to fall.
With that in mind, let’s take a look at some of the Best Homebuilder Stocks to Buy According to Hedge Funds.
Our Methodology
To compile our list of the Best Homebuilder Stocks to Buy According to Hedge Funds, we used screeners to identify 21 companies in the home construction industry. We picked out 13 stocks that had an upside potential to the current stock price as of March 5. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
List of Homebuilder Stocks Sorted By Hedge Fund Sentiment
9. Dream Finders Homes Inc (NYSE:DFH)
Number of Hedge Fund Holders: 17
Dream Finders Homes Inc (NYSE:DFH) is among the best homebuilder stocks to buy according to hedge funds. Dream Finders Homes released its Q4 2025 earnings on February 23. The homebuilder reported EPS of $0.58, which dropped from $1.29 in the same quarter in 2024 and missed the consensus estimate of $0.64. Revenue of $1.21 billion declined from $1.56 billion a year ago but still surpassed the consensus projection of $1.1 billion.
While discussing the results, the management said the company operated in a challenging environment in 2025. During the quarter, Dream Finders Homes recorded drops in home closings and gross margin. For the full year, though, closings increased to an annual record of 8,608 homes. The management said that reflected the company’s commitment to providing affordable homes. Looking ahead, the company is expecting around 9,250 home closings in 2026.
“The ongoing complexity and difficulty of the housing sector persisted through 2025, yet our results demonstrate the strength and resiliency of our business, as well as the perseverance of our team in a challenging environment,” commented Patrick Zalupski, CEO of Dream Finders Homes.
Dream Finders Homes wrapped up 2025 with $899 million in total liquidity, comprising $234.8 million in cash and cash equivalents. The company repurchased $41.8 million worth of its own shares during 2025. Its existing share repurchase plan has $100 million in authorization and runs up to June 2027.
Headquartered in Jacksonville, Florida, Dream Finders Homes (NYSE:DFH) focuses on building single-family homes. It primarily serves the Southeast US region, including the Washington, D.C. metropolitan area. Dream Finders Homes is the official builder of the Jacksonville Jaguars and the PGA TOUR.
8. Green Brick Partners Inc (NYSE:GRBK)
Number of Hedge Fund Holders: 21
Green Brick Partners Inc (NYSE:GRBK) is among the best homebuilder stocks to buy according to hedge funds. On February 25, Green Brick Partners reported its Q4 2025 results. The report showed adjusted EPS of $1.78 on revenue of $552.6 million. Both metrics came well above consensus expectations that called for EPS of $1.63 on revenue of $473.3 million. The company kept a gross margin of 29.4%.
The company said it delivered 1,038 new homes in that quarter, representing a 1.9% increase from the same quarter in 2024. Net new home orders in that quarter were 883 units, which the management said was a record for a fourth quarter.
“We delivered strong fourth quarter results despite ongoing affordability challenges faced by many buyers and softening consumer confidence,” remarked Jim Brickman, co-founder and CEO of Green Brick Partners.
Green Brick Partners wrapped up the quarter with $154.6 million in cash. It had no outstanding borrowing on its revolving credit facilities. That puts its total liquidity around $520 million. During Q4, Green Brick Partners bought back 359,000 shares of its own stock. It returned $23 million to shareholders through that share repurchase program.
In other news, Green Brick Partners announced a fresh share buyback program during its Q4 earnings call. The company said it planned to buy back an additional $150 million worth of its shares.
Texas-based Green Brick Partners Inc (NYSE:GRBK) is a homebuilding and land development company. It’s the third-largest homebuilder in Dallas-Fort Worth. It engages in acquiring and developing land into neighborhoods.
7. Century Communities Inc (NYSE:CCS)
Number of Hedge Fund Holders: 24
Century Communities Inc (NYSE:CCS) is among the best homebuilder stocks to buy according to hedge funds. On February 25, Century Communities Inc (NYSE:CCS) announced that its Century Complete brand will soon begin selling new townhomes at Ellison Townhomes, a modern community in Spartanburg, SC. Featuring the Avalon floor plan, these homes are designed for quality, affordability, and low-maintenance living. Residents will enjoy amenities such as walking trails, a playground, a dog park, open green spaces, and convenient access to both the Daniel Morgan Trail System and Downtown Spartanburg.
Separately, on February 5, Century Communities Inc planned to pay a quarterly cash dividend of $0.32 per share on March 11. Notably, this dividend amount represents a 10% increase over the $0.29 dividend per share that the company paid out in the previous quarter.
Century Communities reported its Q4 2025 results on January 28. In that report, the company said it finished the quarter in a strong financial position. It had $158 million in cash and $1.1 billion in total liquidity.
During the quarter, the company generated an adjusted net income of $47.1 million, or $1.59 per share. Total revenue came to $1.2 billion. The company delivered 3,435 residential homes in that quarter, and these included 3,030 new homes. For the full year 2025, the company reported achieving 10,792 total residential deliveries, including 10,387 new homes.
Looking ahead, Century Communities Inc (NYSE:CCS) expects its 2026 new home deliveries to be in the band of 10,000 to 11,000 homes. Moreover, the company is anticipating $3.6 billion to $4.1 billion in home sales revenue in 2026.
Headquartered in Greenwood Village, Colorado, Century Communities Inc (NYSE:CCS) is one of America’s largest homebuilders. The company handles all aspects of homebuilding, from acquisition to development of land and entitlement. It also offers mortgage and insurance brokerage. Century Communities operates in 16 states across the US.
6. LGI Homes Inc (NASDAQ:LGIH)
Number of Hedge Fund Holders: 29
LGI Homes Inc (NASDAQ:LGIH) is among the best homebuilder stocks to buy according to hedge funds. On March 4, LGI Homes Inc (NASDAQ:LGIH) released its February 2026 home closings report. The company reported the closing of 247 homes in February 2026. As of February 28, LGI Homes had 140 active selling communities, the company said in the report.
In its Q4 2025 report, which was released on February 17, LGI Homes said it closed 1,362 homes during that quarter and 4,685 homes in the full-year 2025. The average sales price per home closed in 2025 was $364,035.
Looking ahead, LGI Homes expects 4,600 to 5,400 home closings in 2026. It projects average sales price per home closed in 2026 to be in the band of $355,000 to $365,000. The company achieved a gross margin of 20.7% in 2025, which it expects to remain broadly stable at 20% in 2026.
LGI Homes exited 2025 with $61.2 million in balance sheet cash. It also had $273.6 million available under its revolving credit facility. That puts the company’s total liquidity at $334.8 million.
In other news, LGI Homes recently expanded its footprint in the Seattle market with the opening of Meadow Brook. It announced the opening of this new community in Puyallup, Washington on February 27. LGI Homes said the brook features upgraded homes and delivers housing opportunities in an area of high demand.
LGI Homes Inc (NASDAQ: LGIH) designs, constructs, and sells homes in 21 states and 36 markets across the US. The company has closed more than 80,000 homes since its inception in 2003. It has also delivered profitable financial results every year. LGI Homes is headquartered in The Woodlands, Texas.
5. Installed Building Products, Inc. (NYSE:IBP)
Number of Hedge Fund Holders: 32
Installed Building Products, Inc. (NYSE:IBP) is among the best homebuilder stocks to buy according to hedge funds. Installed Building Products, Inc. (NYSE:IBP) reported fourth quarter 2025 results on February 26, 2026, showing resilience despite modest revenue pressure. Net revenue slipped 0.4% to $747.5 million, while installation revenue fell 2.2% to $679.7 million. Offsetting this, other revenue from manufacturing and distribution rose 22.8% to $67.8 million.
Net income surged 14.5% to a record $76.6 million, or $2.83 per diluted share, with adjusted net income at $87.7 million. Adjusted EBITDA climbed 7.7% to $142.2 million, reflecting strong profitability despite softer residential demand.
The company strengthened shareholder returns with a $0.37 dividend paid in December and announced a first-quarter dividend of $0.39 per share plus a $1.80 annual variable dividend, both payable March 31, 2026. Fitch Ratings assigned IBP a first-time Long-Term IDR of ‘BB+’ with a stable outlook, while the company closed a $500 million senior unsecured notes offering and expanded its revolving credit facility to $375 million. IBP also authorized a new $500 million stock repurchase program through March 2027, replacing its prior plan.
Acquisitions remain a cornerstone of IBP’s growth strategy. In 2025, the company completed 11 deals representing $64 million in annual revenue, and it expects to acquire at least $100 million in 2026. Recent transactions include Thermo-Tech Mechanical Insulation and Northstar Comfort Services, adding about $45 million in annual sales. CEO Jeff Edwards emphasized disciplined profitability, diversification, and strong cash flow generation, noting that while near-term homebuilding activity may remain challenging, IBP is well positioned for long-term growth.
Installed Building Products, Inc. (NYSE:IBP) is one of the largest U.S. installers of residential insulation and complementary building products such as waterproofing, fireproofing, garage doors, rain gutters, window blinds, shower doors, shelving, and mirrors. Operating across all 48 continental states and the District of Columbia, IBP manages the full installation process from material procurement to job-site delivery. With a national network of over 250 branch locations, the company serves single-family, multi-family, and commercial builders, combining scale with quality service to support growth and customer satisfaction.
4. Champion Homes Inc (NYSE:SKY)
Number of Hedge Fund Holders: 37
Champion Homes Inc (NYSE:SKY) is among the best homebuilder stocks to buy according to hedge funds. On February 3, Champion Homes Inc (NYSE:SKY) reported its fiscal Q3 2026 results. These are results for the three-month period ended December 27. The homebuilder posted adjusted EPS of $0.96, surpassing the consensus estimate of $0.84. It delivered revenue of $656.6 million, which increased 1.8% YoY and topped the consensus expectation of $647.1 million.
The quarter was supported by strong home prices. The company achieved an average selling price of $99,300 per US home, representing an increase of 4.6% from the same period a year ago. Otherwise, home unit sales fell 2.6% amid soft market conditions.
”Despite a challenging environment in the third quarter, we delivered strong operational execution, advanced our strategic priorities, and achieved financial results in line with our expectations,” commented Tim Larson, CEO of Champion Homes.
Champion Homes’ operating cash flow during the quarter was $100 million. The homebuilder finished the quarter with $659.8 million in cash and cash equivalents after spending $50 million on share repurchases. Notably, the cash increased by $41 million from the previous quarter.
In other news, Champion Homes’ board refreshed the company’s buyback program, providing for $150 million of potential repurchases in the future.
Champion Homes, Inc. (NYSE:SKY) is a manufactured housing company. It produces factory-built homes for single-family, multi-family, and hospitality consumers. The company has been in business for more than 70 years and operates 46 manufacturing facilities across the US and western Canada. It operates through brands such as Skyline Homes, Champion Homes, Genesis Homes, and Athens Park Models.
3. Meritage Homes Corp (NYSE:MTH)
Number of Hedge Fund Holders: 39
Meritage Homes Corp (NYSE:MTH) is among the best homebuilder stocks to buy according to hedge funds. On March 4, Truist Securities initiated coverage on Meritage Homes Corp (NYSE:MTH) stock with a Buy rating and a price target of $90.
For this bullish view on Meritage Homes, the market research firm cited the homebuilder’s spec-only approach to business as a key factor. Notably, Meritage Homes doesn’t offer customized options to home buyers but builds everything to spec. This approach has a cost-savings benefit, according to Truist.
According to the firm, the Meritage Homes stock is a good deal for investors seeking exposure to the lower-end of the home price spectrum.
Separately, on February 19, Meritage Homes Corporation (NYSE:MTH) announced that its Board of Directors approved a quarterly dividend of $0.48 per share, marking a 12% increase from last year’s $0.43. The dividend will be paid on March 31, 2026, to shareholders of record as of March 17, 2026.
In its Q4 2025 earnings report, Meritage Homes posted adjusted EPS of $1.67, topping the consensus estimate of $1.53. However, revenue of $1.41 billion missed the consensus projection of $1.49 billion. The company said it operated in a challenging environment during the quarter. It was a period marked by a 7% drop in home closings and a 5% decline in the average selling price on closings.
Meritage Homes Corp (NYSE: MTH) is among the top five homebuilders in the US. The company targets entry-level and first move-up home markets. It focuses on offering energy efficient and affordable homes to consumers. Meritage says it has delivered more than 210,000 homes in the course of its 40-year history.
2. Pultegroup Inc (NYSE:PHM)
Number of Hedge Fund Holders: 45
Pultegroup Inc (NYSE:PHM) is among the best homebuilder stocks to buy according to hedge funds. On March 2, PulteGroup (NYSE:PHM) outlined its strategic priorities during the 47th Annual Raymond James Institutional Investor Conference.
At that event, Jim Ossowski, the CFO of PulteGroup, focused on strategic land management. He took the opportunity to highlight how Pultegroup approaches land management with discipline. The executive also discussed the company’s strategic segmentation and efficient cash allocation.
In the end, Ossowski projected Pultegroup as a company that applies disciplined land underwriting and prudent cash allocation in order to maximize returns on equity and maintain a strong balance sheet. Also, it became clear from Ossowski’s presentation that Pultegroup remains strong in key markets like Florida, and that California and Texas remain challenging markets.
In other news, Pultegroup Inc (NYSE:PHM) announced on February 20 that it had completed an offering of $800 million notes. These are senior unsecured notes offered in two series. The first series is $400 million of notes offered at an interest of 4.25% and maturing in 2031. The second series is $400 million of notes at an interest rate of 4.9% and due 2036.
PulteGroup, Inc. (NYSE:PHM) is one of the largest homebuilding companies in America. It’s based in Atlanta, Georgia, and serves more than 45 markets throughout the US and caters to diverse groups of buyers. It operates through a portfolio of brands, including Pulte Homes, DiVosta Homes, John Wieland Homes, Neighborhoods, Centex, and Del Webb.
1. Taylor Morrison Home Corp (NYSE:TMHC)
Number of Hedge Fund Holders: 45
Taylor Morrison Home Corp (NYSE:TMHC) is among the best homebuilder stocks to buy according to hedge funds. On March 4, BofA Securities raised its price target on Taylor Morrison Home (NYSE: TMHC) to $72 from $70 while keeping a Neutral rating, but cut its 2026 EPS forecast by 10% due to a more cautious margin outlook, noting that the stock’s valuation looks fair relative to its return on tangible equity.
Notably, the actions by BofA Securities market experts on Taylor Morrison Home comes after the company reported blowout Q4 2025 results. The company delivered an adjusted EPS of $1.91, topping the consensus estimate of $1.73. Revenue came in at $1.96 billion, surpassing the consensus expectation of $1.95 billion.
Although home closing volume was down 8% during the quarter compared to the previous year, the average selling price increased by 2%. The company achieved a gross margin of 21.8% on home closings.
Taylor Morrison Home delivered 12,997 homes in the whole of 2025, an increase from 12,896 home deliveries in 2024. Looking ahead, the company expects 2,200 home closings and 20% gross margin in Q1 2026. For the full year 2026, it expects 11,000 home closings.
Taylor Morrison Home Corp (NYSE:TMHC) is one of America’s largest homebuilders and land developers. Headquartered in Scottsdale, Arizona, Taylor Morrison serves diverse groups of customers, including first-time buyers and move-up buyers.
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