12 Stocks That Are About to Explode

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

Number of Hedge Fund Holders: 25

Analysts’ Upside Potential as of March 27: 111.07%

Beazer Homes USA, Inc. (NYSE:BZH) is a residential homebuilder operating primarily in the United States. The company specializes in designing and constructing single-family homes and townhomes across various price segments, from entry-level to move-up buyers. The company offers customized floor plans and flexible home designs, emphasizing energy efficiency, quality construction, and affordability. BZH focuses its operations in select markets across the Southeast, Southwest, and Mid-Atlantic regions, strategically targeting areas with strong demographic growth and housing demand. With an analyst upside potential of over 111%, BZH is one of the stocks that are about to explode.

Beazer Homes USA, Inc. (NYSE:BZH) had a profitable and productive Q1 2025 that positions it to achieve both its full-year outlook and multiyear goals. The company experienced notable growth with community count up nearly 20% versus the prior year, enabling increased sales and closings compared to last year. Their active lot position grew by about 10%, providing visibility into further community count growth for both current and next year. The company’s balance sheet efficiency improved with 59% of lot position now controlled through options, up from 53% last year, which helps improve returns and mitigate risk. Zero Energy Ready homes gained significant momentum, representing more than 85% of sales during the quarter, up from 43% in the previous year’s first quarter, with reduced costs to achieve the DOE standard by several thousand dollars per home.

Despite these positives, Beazer Homes USA, Inc. (NYSE:BZH) missed both sales and closings guidance for the quarter, particularly experiencing challenges in the Texas and Florida markets, where higher inventory levels led to sluggish sales and more aggressive incentives. Looking forward, the company remains committed to achieving its three multiyear goals: expanding community count, deleveraging the balance sheet, and delivering superior homes. They expect to end the year with around 180 communities and are on track to have more than 200 communities by the end of FY2026. The company also aims to reduce its net debt-to-net capitalization ratio below 30% by the end of the fiscal year 2026.