Considering investing in homebuilding stocks? While the best homebuilding stocks depend on your portfolio and investment goals, we've identified some homebuilding stocks that are worth keeping an eye on in the private construction sector. Keep reading to learn more about homebuilding stocks and how to start investing.
8 popular homebuilding stocks to watch
We round up a selection of stocks in or related to the private construction industry, weighting the list more heavily towards popular mid- and large-cap stocks.
| Best stock | 1-year return | Market cap | Exchange | Volume | Buy on Qtrade |
|---|---|---|---|---|---|
| NVR (NVR.US) | -1.96% | $20.7 billion (USD) | NYSE | 34,100 | |
| DR Horton (DHI.US) | 7.48% | $43.3 billion (USD) | NYSE | 1,818,203 | |
| Toll Brothers (TOL.US) | 8.67% | $13.7 billion (USD) | NYSE | 1,190,109 | |
| LGI Homes (LGIH.US) | -41.77% | $1.2 billion (USD) | NASDAQ | 185,672 | |
| Lennar Corporation (LEN.US) | -15.19% | $27 billion (USD) | NYSE | 2,440,566 | |
| PulteGroup (PHM.US) | 15.12% | $24.7 billion (USD) | NYSE | 2,345,105 | |
| Beazer Homes USA (BZH.US) | 3.35% | $636.5 million (USD) | NYSE | 779,544 | |
| Bird Construction (BDT.TO) | 37.87% | $1.7 billion (CAD) | Toronto Stock Exchange | 255,200 |
What to look for when investing in homebuilding stock
The private construction industry is affected by a range of complex factors such as trade policies, regulations, and fluctuating supply and demand. So when considering homebuilding stocks to buy, it's important that you have access to vital information about a company's financial health, leadership team, and market positioning.
Also keep in mind that, while volatility can be ideal for day traders, long-term investors will want to look for stocks to offer steadier gains over time.
How to invest in homebuilding stock
- Research the private construction industry. Before investing, learn about the homebuilding stock sector, its trends and the companies within it. Look at each company's financial health, potential for growth and past performance to identify stocks that fit your investment goals.
- Choose a stock trading platform. Compare trading fees, access to trading tools and user interface options. We've identified reliable trading platforms to help narrow down your options below or check out the best stock trading apps in Canada to find one that suits your needs.
- Open and fund your account. Sign up with your personal details and link a bank account or funding method to deposit money before you start trading.
- Select the homebuilding stock(s) to buy. Search by company name or ticker symbol, like NVR or DHI. Compare key metrics such as market cap, price history and earnings per share to pick the best stock for your strategy.
- Buy the stock and monitor performance. Place your order to buy the stock and track its performance over time. Consider setting alerts, signing up for industry newsletters or using platform research tools to stay up to date on market changes.
Our top picks for where to buy homebuilding stocks
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Are homebuilding stocks a good investment?
While it's possible to turn a profit investing in homebuilding stocks, keep in mind that—like any investment—homebuilding stocks are not immune to risk. These stocks are subject to fluctuating conditions both in the market and in the private construction industry, so carefully vet your picks before you invest.What are the best homebuilding stocks?
A lot of factors go into picking the best homebuilding stocks. Stock performance can be impacted by factors like market conditions, company decisions and global events. Plus, what may be a strong homebuilding stock investment for one person might not be suitable for another.
That said, we rounded up this list of popular homebuilding stocks in or related to the private construction industry to help narrow down your options:
- NVR (NVR)
- DR Horton (DHI)
- Toll Brothers (TOL)
- LGI Homes (LGIH)
- Lennar Corporation (LEN)
- PulteGroup (PHM)
- Beazer Homes USA (BZH)
- Bird Construction (BDT)
Keep in mind that this is not a "best" list or a recommendation. It highlights some homebuilding stocks for informational purposes only and does not indicate past or future performance or investment advice. We do not guarantee any investment performance.
We've outlined detailed company and stock performance details for each homebuilding stock below. Keep reading to decide if any of these companies are the right investment for you.
NVR (NVR)
NVR, Inc. operates as a homebuilder in the United States. The company operates through, Homebuilding and Mortgage Banking segments.
| Closing stock price | $7,635.73 |
|---|---|
| Market Capitalization | $20.7 billion |
| Gross profit (TTM) | $2.5 billion |
| Profit margin | 13.55% |
| Revenue (TTM) | $10.6 billion |
| Earnings per share (TTM) | $454.49 |
| 52-week stock price range | $6,562.85 – $8,618.28 |
DR Horton (DHI)
D. R. Horton, Inc.
| Closing stock price | $149.77 |
|---|---|
| Market Capitalization | $43.3 billion |
| Gross profit (TTM) | $7.4 billion |
| Profit margin | 9.95% |
| Revenue (TTM) | $33.5 billion |
| Earnings per share (TTM) | $10.88 |
| 52-week stock price range | $109.46 – $183.98 |
Toll Brothers (TOL)
Toll Brothers, Inc. , together with its subsidiaries, designs, builds, markets, sells, and arranges finance for a range of detached and attached homes in luxury residential communities in the United States. It designs, builds, markets, and sells condominiums through Toll Brothers City Living.
| Closing stock price | $145.48 |
|---|---|
| Market Capitalization | $13.7 billion |
| Gross profit (TTM) | $2.8 billion |
| Profit margin | 12.28% |
| Revenue (TTM) | $11 billion |
| Earnings per share (TTM) | $13.50 |
| 52-week stock price range | $85.93 – $151.10 |
LGI Homes (LGIH)
LGI Homes, Inc. engages in the design, construction, and sale of homes in the United States. It markets and sells attached and detached entry-level homes and active adult offerings under the LGI Homes brand; and luxury homes under the Terrata Homes brand.
| Closing stock price | $50.20 |
|---|---|
| Market Capitalization | $1.2 billion |
| Gross profit (TTM) | $400.7 million |
| Profit margin | 5.93% |
| Revenue (TTM) | $1.8 billion |
| Earnings per share (TTM) | $4.51 |
| 52-week stock price range | $39.70 – $88.61 |
Lennar Corporation (LEN)
Lennar Corporation, together with its subsidiaries, operates as a homebuilder primarily under the Lennar brand in the United States. It operates through Homebuilding East, Homebuilding Central, Homebuilding South Central, Homebuilding West, Financial Services, Multifamily, and Lennar Other segments. The company's homebuilding operations include the construction and sale of single-family attached and detached homes, as well as the purchase, development, and sale of residential land; and development, construction, and management of multifamily rental properties.
| Closing stock price | $108.80 |
|---|---|
| Market Capitalization | $27 billion |
| Gross profit (TTM) | $6.1 billion |
| Profit margin | 6.08% |
| Revenue (TTM) | $34.2 billion |
| Earnings per share (TTM) | $7.84 |
| 52-week stock price range | $97.13 – $143.62 |
PulteGroup (PHM)
PulteGroup, Inc. , through its subsidiaries, engages in the homebuilding business in the United States. It acquires and develops land primarily for residential purposes; and constructs housing on such land.
| Closing stock price | $127.07 |
|---|---|
| Market Capitalization | $24.7 billion |
| Gross profit (TTM) | $4.6 billion |
| Profit margin | 12.82% |
| Revenue (TTM) | $17.3 billion |
| Earnings per share (TTM) | $11.12 |
| 52-week stock price range | $87.56 – $141.59 |
Beazer Homes USA (BZH)
Beazer Homes USA, Inc. operates as a homebuilder in the United States. The company designs, constructs, and sells single-family, condominiums, villas, and duets homes under the Beazer Homes, Gatherings, and Choice Plans brands.
| Closing stock price | $22.81 |
|---|---|
| Market Capitalization | $636.5 million |
| Gross profit (TTM) | $350.5 million |
| Profit margin | 1.92% |
| Revenue (TTM) | $2.4 billion |
| Earnings per share (TTM) | $0.29 |
| 52-week stock price range | $17.37 – $27.29 |
Bird Construction (BDT)
Bird Construction Inc. provides construction services in Canada. The company primarily focuses on projects in the industrial, building, and infrastructure markets.
| Closing stock price | C$31.38 |
|---|---|
| Market Capitalization | C$1.7 billion |
| Gross profit (TTM) | C$356 million |
| Profit margin | 2.72% |
| Revenue (TTM) | C$3.5 billion |
| Earnings per share (TTM) | C$1.70 |
| 52-week stock price range | C$17.07 – C$31.45 |
Compare trading platforms to buy homebuilding stock
Compare special offers, low fees and a wide range of investment options among popular trading platforms in Canada. Note that the dollar amounts in the table below are in CAD.
Finder Score for stock trading platforms
To make comparing even easier we came up with the Finder Score. Trading costs, account fees and features across 10+ stock trading platforms and apps are all weighted and scaled to produce a score out of 10. The higher the score, the better the platform—it's that simple.
Bottom line
If you're considering adding homebuilding stocks to your portfolio, make sure you thoroughly look into any companies before investing to help mitigate risk. We've compiled a list of homebuilding stocks to help narrow down your options. Then choose a legitimate stock trading platform to start investing. After that it comes down to monitoring the private construction industry to know when to buy, sell or hold.Frequently asked questions about homebuilding stocks
Sources
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