10 Best Residential Construction Stocks to Buy

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

Number of Hedge Fund Holders: 64

Toll Brothers, Inc. (NYSE:TOL) was founded in southeastern Pennsylvania in 1967 by the brothers Bob and Bruce. The firm expanded across the United States over the years and emerged as America’s luxury home builder. Currently, Toll Brothers operates in 24 states and more than 60 markets nationwide.

Toll Brothers, Inc. (NYSE:TOL) is in a good spot with its widespread national footprint positioning it for growth, featuring the widest offering of luxury homes, and catering to the most affluent customers in its industry. The Toll Brothers advantage setting the homebuilder apart comes from the prestigious and desirable locations it chooses to build in, the distinctive architecture of a Toll Brothers home, unrivaled choice, and exceptional customer service.

For FY 2025’s first quarter, Toll Brothers delivered 1,991 homes and generated home sales revenues of $1.84 billion. The homebuilder signed 2,307 net contracts in its first quarter, up 13% in units when compared to the prior year’s first quarter. Demand was robust in the firm’s North and Mid-Atlantic regions in the first quarter, from Boston to Atlanta, and Dallas, Houston, Denver, Boise, Las Vegas, and California. Regarding the spring selling season, the homebuilder witnessed mixed results, with healthy demand in many of its markets especially at the higher end, while affordability constraints and more inventories in some markets pressured sales at the lower end.