10 Best Residential Real Estate Stocks To Buy

6. Tri Pointe Homes, Inc. (NYSE:TPH)

Number of Hedge Fund Holders: 35

Tri Pointe Homes, Inc. (NYSE:TPH) is one of the largest home builders in the United States. The publicly traded company has operations in 12 states and the District of Columbia. The home builder has been engaging in the construction of premium homes and communities with deep ties to the communities it serves.

Tri Pointe Homes, Inc. (NYSE:TPH) is a recognized leader in innovative design, energy efficiency, customer experience, and environmentally friendly business practices. The home builder has created a diversified portfolio of markets which extends its market coverage. Apart from the national reach and local market expertise, the firm has a significant supply of high-quality land assets in strong housing markets.

While the home builder focuses on expanding scale in existing markets while creating a foundation for organic growth in 3 new markets, it drives a commendable performance. With a 38% year-over-year increase in home sales, the firm closed a successful second quarter. Net income and diluted earnings per share witnessed a rise of 94% and 108%, year-over-year, respectively. The firm benefitted from the strength of demand in its core markets with a strong buyer profile which financed with its mortgage company.

While the traffic and orders improved throughout July with mortgage rates dropping below 7%, the firm will be balancing pace and price to meet its overall sales objectives in the typically slow summer months. The firm is poised to grow with favorable demand trends for new housing among millennials and Gen Z, land availability, and as labor resources continue to be a strength. It is fueling further growth and geographic diversification through penetrating Coastal Carolinas, Orlando, and Utah.

Tri Pointe Homes, Inc. (NYSE:TPH) serves as a strong company with local market expertise and national reach as well as a strong financial performance. As of Q2, the stock is held by 35 hedge funds.