5 Best Housing Stocks To Buy Now

3. Lennar Corporation (NYSE:LEN)

Number of Hedge Fund Holders: 47

Lennar Corporation (NYSE:LEN) is a homebuilding firm that runs multiple segments under its brand, including Homebuilding Central, Homebuilding East, Homebuilding Texas, Multifamily, financial services, and Lennar Other. The homebuilding business caters to single-family houses, residential land, and multifamily rental properties. The financial segment handles mortgage financing, closing services for clients, and title insurance.

Lennar Corporation (NYSE:LEN) is trading at an attractive forward P/E of 5.69x as of October 24, 2022, in comparison to the sector median of 12.82x. Despite the slowdown in the housing market, the company continues to deliver strong margins due to its dynamic pricing model and is relatively better placed than other housing stocks to pull through the correction in the housing market. Moreover, Lennar Corporation (NYSE:LEN) offers a dividend yield of 2.04% at the current price level.

On October 4, 2022, Aaron Hecht, an analyst at JMP Securities, reduced his price target on Lennar Corporation (NYSE:LEN) to $115. The analyst currently has an Outperform rating on the stock. The analyst stated that the company performed well in Q3 as the homebuilding segment continued to post good results, but there will be some pressure on the business as housing affordability deteriorates in the future.

At the end of Q2 2022, Greenhaven Associates held the highest stake in Lennar Corporation (NYSE:LEN), with a holding of 9,320,767 shares of the company, constituting 14.19% of the fund’s portfolio. According to Insider Monkey database, 47 hedge funds owned stakes in the company at the end of the June quarter.