Highlights from Zacks Analyst Blog: Beazer Homes USA, TRI Pointe Homes, Meritage Homes Corporation, Toll Brothers and Lennar Corporation

For immediate release

Chicago, IL – December 20, 2021 – Zacks.com announces the list of stocks featured on the Analysts Blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Recent actions featured in the blog include: Beazer Homes USA, Inc. BZH, TRI Pointe Homes, Inc. TPH, Meritage Homes Corporation MTH, Toll Brothers, Inc. TOL, and Lennar Corporation LEN.

Here are highlights from Friday’s analyst blog:

5 stocks to buy if homebuilder confidence rises solid

Construction activity in the United States has been on the rise since the start of the reopening of the economy. However, the biggest support the sector has received comes from the residential construction market. Sales of new and existing homes are increasing almost every month.

The confidence of home builders has increased in recent times and people are buying homes despite the rising costs. Given this scenario, housing stocks as Beazer Houses United States, TRI Pointe Homes, Meritage Houses Company, Toll brothers and Lennar Corporation should benefit in the short term.

High confidence of home builders

December is not a good month for the housing market, but demand for new homes is boosting builder confidence. The National Home Builders Association reported on December 15 that the U.S. Homebuilder Confidence Index read 84 for December, up one point from November.

Although the increase is moderate, builder confidence is at its highest level since February and the housing market ends the year on a high. In addition, this is the fourth consecutive month that homebuilders’ sentiment has increased. Anything over 50 is considered positive.

The surge in sentiment comes despite concerns about inflation, labor shortages and the crisis in the supply chain. Prices for construction goods like steel, aluminum and wall panels all rose in November, but this did not affect demand for new homes. In fact, new home prices in the United States jumped 17.5% year over year in November.

The housing market is about to grow

Homebuilder confidence was boosted in December by a number of factors. All three components of the HMI gave impressive readings. Current selling conditions rose to 90. Buyer traffic jumped to 70, while sales expectations for the next six months were unchanged for the third consecutive month at 84.

The home construction industry has been in tears since the COVID-19 outbreak. After almost shutting down during the outbreak’s first few months, people flocked to buy new homes. Last year, a low mortgage rate helped boost sales.

However, this year also did not affect sales much despite higher interest rates, soaring commodity prices and a shortage of labor. The Commerce Department said new home sales rose 0.4% in October to an annual rate of 745,000 after surging 7.1% the month before.

In addition, sales of existing homes rose 0.8% in October to a seasonally adjusted annual rate of 6.34 million units after an impressive jump of 7% in September. This has boosted homebuilders’ confidence and the trend is expected to continue over the next few months given the existing demand.

Our choices

A surge in homebuilder confidence for the fourth consecutive month shows that the homebuilding market is on track to grow over the coming months. In this good time to invest in home construction, we suggest four stocks with a Zacks # 1 (strong buy) or 2 (buy) rank that are likely to gain the lead. You can see the full list of today’s Zacks # 1 Rank stocks here.

Beazer Homes USA, Inc. designs, builds and sells single family homes. The company designs homes to appeal primarily to entry-level and high-end home buyers. BZH designs homes to appeal primarily to entry-level and leading home buyers. The goal of Beazer Homes is to provide customers with homes that integrate quality and value. BZH’s subsidiary, Beazer Mortgage, originates mortgages for the company’s homebuyers.

Beazer Homes’ expected profit growth rate for the current year is 23.7%. Zacks’ consensus estimate for current year earnings has improved 44% in the past 60 days. BZH shares have gained 23.6% in the past three months. Beazer Homes has a Zacks # 1 rank.

Toll brothers builds communities of detached and attached single-family homes; master-planned luxury residential resort-style golf communities; and low, medium and high rise urban communities, mainly on the land it develops and improves. TOL operates in Arizona, California, Florida, Delaware, Maryland, Pennsylvania and South Carolina. Toll Brothers offers homes in two segments, namely traditional homebuilding products and city living.

Toll Brothers’ expected profit growth rate for the current year is 46.3%. Zacks’ consensus estimate for current year earnings has improved 11.6% in the past 60 days. TOL shares have gained 15.4% in the past three months. Toll Brothers has a Zacks # 1 rank.

TRI Pointe Homes is involved in the design, construction and sale of single family homes. TPH’s operating portfolio includes Maracay Homes in Arizona; Pardee Homes in California and Nevada; Quadrant Homes in Washington; Texas trend-setting houses; TRI Pointe Homes in California and Colorado; and Winchester Homes in Maryland and Virginia.

The expected profit growth rate of the TRI Pointe Group for the current year is 80.2%. Zacks’ consensus estimate for current year earnings has improved 8.6% in the past 60 days. Shares of TPH have gained 22.5% in the past three months. The TRI Pointe group is ranked n ° 1 by the Zacks.

Maisons Méritage Corp. is a leading designer and builder of single family homes. MTH is primarily engaged in the construction and sale of single-family homes for entry-level buyers, first-time buyers, luxury buyers and active adult buyers in historically high growth regions of the United States. . Meritage Homes operates as a holding company and has no independent assets or operations.

Meritage Homes Corporation’s expected profit growth rate for the current year is 74.4%. Zacks’ consensus estimate for current year earnings has improved 2.9% in the past 30 days. MTH shares have advanced 13.6% in the past three months. Meritage Homes Corporation has a Zacks # 1 rank.

Lennar Corp. is engaged in housing construction and financial services in the United States. LEN’s featured segments include Residential Construction, Lennar Financial Services, Rialto, and Lennar Multi-Family Building. Despite the varied product portfolio, residential construction remains Lennar’s core business.

The company’s expected profit growth rate for the current year is 5.1%. Zacks’ consensus estimate for current year earnings has improved 1.6% in the past 60 days. LEN shares have gained 11.8% in the past three months. Lennar wears Zacks Rank # 2.

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Past performance is no guarantee of future results. The potential for loss is inherent in any investment. This material is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether an investment is suitable for a particular investor. It should not be assumed that any investment in any identified and described securities, companies, sectors or markets was or will be profitable. All information is current as of the date hereof and is subject to change without notice. The views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or securities asset management activities. These returns come from hypothetical portfolios made up of stocks with a Zacks rank = 1 that have been rebalanced monthly without any transaction costs. These are not the returns of actual equity portfolios. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for more information on the performance numbers displayed in this press release.

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Toll Brothers Inc. (TOL): Free Stock Analysis Report

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Meritage Homes Corporation (MTH): Free Inventory Analysis Report

Beazer Homes USA, Inc. (BZH): Free Inventory Analysis Report

Tri Pointe Homes Inc. (TPH): Free Inventory Analysis Report

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