10 Best Home Builder Stocks To Buy Now

4. Toll Brothers, Inc. (NYSE:TOL)

Number of Hedge Fund Holders: 46

Toll Brothers, Inc. (NYSE:TOL) was founded by the brothers Bob and Bruce Toll in southeastern Pennsylvania in 1967. The firm expanded across the US over the years and emerged as America’s luxury home builder currently building in 24 markets nationwide. Toll Brothers, Inc. (NYSE:TOL) is also a Fortune 500 company that has been recognized as one of the top home builders multiple times.

The home builder’s national footprint positions it in an attractive place for growth. The growth prospects are even stronger as it has the widest variety of products and the widest range of prices of any of the builders. In the words of the builder, there are a number of advantages that sets it apart including prestigious and desirable locations to build in, distinctive architecture, unrivaled choice, and exceptional customer service.

Recently, Toll Brothers generated a record third-quarter home sales revenue of $2.72 billion. The firm’s strong markets included New Jersey, Pennsylvania, Metro DC, South Carolina, Atlanta, Boise, Las Vegas, and all of California. Additionally, the builder forecasts the market conditions to remain positive backed up by low mortgage rates and supply-demand imbalance. Toll’s luxury move-up business will also benefit from older millennials hitting their 40s over the next decade. As baby boomers retire, they are also looking for new homes.

In a housing market long been subject to elevated mortgage rates, Toll Brothers has managed to bring its sales up 25% year-to-date. The firm remains on target to achieve its goal of operating from 410 communities by the year-end. The aforementioned competitive advantages, supportive demographics, and a healthy balance sheet with low net debt deem Toll Brothers, Inc. (NYSE:TOL) an interesting investment. As of Q2, the stock is held by 46 hedge funds with Greenhaven Associates as its largest shareholder.