10 Best Home Builder Stocks To Buy Now

7. Meritage Homes Corporation (NYSE:MTH)

Number of Hedge Fund Holders: 33

Meritage Homes Corporation (NYSE:MTH) is the 5th largest American homebuilder based on the homes closed in the year 2023. The home builder provides energy-efficient and affordable entry-level and first-move-up homes. It operates in multiple states including Arizona, California, Colorado, Utah, Texas, Florida, Georgia, North Carolina, South Carolina, and Tennessee.

The company has a long history of home building. It has successfully delivered 185,000 homes during its 38 years in business. Other than being well-reputed for its quality construction and distinctive style, the firm is an industry leader in energy-efficient homebuilding. The current competitive advantage of Meritage Homes Corporation (NYSE:MTH) is the available supply of quick turning move-in ready homes.

With the highest second-quarter closings and the highest second-quarter orders volume of 3,799 homes, the firm outperformed during the recent quarter. Home closing revenue climbed 10% year-over-year to $1.7 billion. Amidst prevailing housing conditions in the country, the firm’s focus on affordable move-in ready inventory enables the home builder to accelerate its growth. Overall, the year’s first half went well with increasing total sales orders and home closing revenue.

The quick turning move-in ready homes strategy, strong balance sheet, and prioritizing pace over price has positioned Meritage Homes Corporation (NYSE:MTH) for growing its market share. As of 2024’s second quarter, the stock is held by 33 hedge funds. Citadel Investment Group serves as the most dominant shareholder in the company.