12 Best Housing Stocks to Invest in According to Analysts

1. Beazer Homes USA, Inc. (NYSE:BZH)

Average Upside Potential: 53.93%

Beazer Homes USA, Inc. (NYSE:BZH) is a leading American homebuilder. The company is built on a solid family foundation and has been engaging in building homes across the United States for more than 50 years. Beazer is known for its quality homebuilding, craftsmanship, and innovation. The firm is headquartered in Atlanta.

Beazer is well-positioned to drive sustainable value for its shareholders in the years to come. With industry-leading energy-efficient homes, a growing lot position, an experienced operating team, and a healthy balance sheet, the firm is poised to grow. Currently, the firm is making solid progress towards its goal of over 200 active communities by fiscal year-end 2026, with its active community count of 162 at the end of fiscal 2024.

Fiscal year 2024 was challenging for Beazer Homes USA, Inc. (NYSE:BZH) but the firm successfully closed the year with its active communities up 20.9% year-over-year. Homebuilding revenue was up 22.1% year-over-year for the fourth quarter while it climbed 4.3% for fiscal 2024, as compared to fiscal 2023. Beazer is benefitting from its growing community count and an improvement in sales pace. The firm is optimistic about the coming fiscal year and expects further expansion of its community count to result in revenue growth and double-digit return on capital employed.

While we acknowledge the potential of BZH as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than BZH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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