12 Best Housing Stocks to Invest in According to Analysts

4. Taylor Morrison Home Corporation (NYSE:TMHC)

Average Upside Potential: 41.00%

Taylor Morrison Home Corporation (NYSE:TMHC) is an Arizona-based homebuilder and developer. The company has operations across 20 markets in 12 states and satisfies the needs of diverse consumers including first-time, move-up, luxury, and resort lifestyle homebuyers and renters. The firm’s financial services segment offers mortgage financing, title services, and homeowners’ insurance.

The home builder has a company legacy that dates back over 100 years. It boasts an attractive national footprint spanning some of the highest-growth markets and prime locations across the United States. This concentration in prime locations enhances its portfolio’s through-the-cycle resiliency. Alongside a leading national, regional, and local scale, the homebuilder continues to benefit from a diverse portfolio serving consumers across the homebuyer spectrum while its buyers tend to be well-qualified with financial flexibility.

Against headwinds such as economic uncertainty, interest rate volatility, and hurricanes, Taylor Morrison Home Corporation (NYSE:TMHC) has been resilient. The firm delivered better-than-expected results in the third quarter of 2024. Earnings per diluted share witnessed an over 50% year-over-year growth while home closings revenue increased 26% to $2.0 billion. The firm is benefitting from healthy demand and pricing resiliency across its portfolio as it caters to the needs of well-qualified homebuyers with good product offerings in prime community locations.

Regarding the future of the firm, the CEO Sheryl Palmer reiterated bright prospects in the coming year, stating:

“As we head into 2025, we are confident that our long-standing emphasis on capital-efficient growth will yield another year of strong performance, supported by tailwinds driving the need for new construction and our favorable positioning as a diversified homebuilder”