Top 5 Extreme Value Stocks To Buy Now

4. Tri Pointe Homes, Inc. (NYSE:TPH)

Number of Hedge Fund Holders: 25

Tri Pointe Homes, Inc. (NYSE:TPH) is a California-based company that engages in the design, construction, and sale of single-family attached and detached homes in the United States. The company operates six brands – Maracay in Arizona, Pardee Homes in California and Nevada, Quadrant Homes in Washington, Trendmaker Homes in Texas, TRI Pointe Homes in California, Colorado, and the Carolinas, and Winchester Homes in Maryland, Virginia, and the District of Columbia. 

On October 27, Tri Pointe Homes, Inc. (NYSE:TPH) reported a Q3 GAAP EPS of $1.45 and a revenue of $1.06 billion, outperforming Wall Street consensus by $0.22 and $50 million, respectively. For the fourth quarter of 2022, Tri Pointe Homes, Inc. (NYSE:TPH) anticipates delivering between 1,700 and 1,900 homes at an average sales price of between $700,000 and $715,000. 

Riley analyst Alex Rygiel on October 18 maintained a Neutral rating on Tri Pointe Homes, Inc. (NYSE:TPH) and lowered the price target on the shares to $17 from $20. The analyst believes the “rapid and significant increase” in mortgage rates has and will lead to another drop in new home sales, pricing/incentives, and margins, leading to an even more challenging 2023 than priorly expected by homebuilders and investors. 

According to Insider Monkey’s Q3 data, 25 hedge funds were bullish on Tri Pointe Homes, Inc. (NYSE:TPH), compared to 20 funds in the earlier quarter. Greg Poole’s Echo Street Capital Management is the leading stakeholder of the company, with 7.17 million shares worth $108.3 million. 

Here is what Third Avenue Management Small-Cap Value Fund has to say about Tri Pointe Homes, Inc. (NYSE:TPH) in its Q4 2021 investor letter:

“Single-Family (4.0% of assets): Tri Pointe Holdings own highly attractive land assets in supply constrained geographies. The company have taken advantage of the single-family housing boom by monetizing assets at attractive prices despite a challenged cost environment. Tri Pointe’s exceptional asset quality coupled with insatiable demand for residential housing should allow them to grow intrinsic value despite higher costs and supply chain delays industrywide.”