10 Best Residential Construction Stocks to Buy

7. Meritage Homes Corporation (NYSE:MTH)

Number of Hedge Fund Holders: 39

Meritage Homes Corporation (NYSE:MTH) is another large American homebuilder. 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.

Meritage has built its reputation for its quality construction, distinctive style, and customer experience during its 39 years in business. The homebuilder’s competitive advantage is its available supply of quick turning move-in ready homes. This focus on affordable move-in ready inventory enables it to accelerate its growth amid an underbuilt supply of homes.

Meritage Homes Corporation (NYSE:MTH) recorded its highest annual closing volume of 15,611 homes for the full year 2024 while accomplishing a company-high home closing revenue of $6.3 billion. The management believed the firm to be in a good position to grow its market share further and capture demand in the spring selling season, based on a restricted supply of homes at its price points, favorable demographics for its offerings, and stability in the job market.