Oppenheimer’s Favorite Stocks For Next 12 Months: Top 32 Stock Picks

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

Share Price Upside: 18%

Number of Hedge Fund Investors In Q2 2024: 21

Average Analyst Share Price Target: $38.25

Beazer Homes USA, Inc. (NYSE:BZH) is an American homebuilder headquartered in Atlanta, Georgia. While a relatively smaller firm compared to mega homebuilders, it is the only homebuilding stock on Oppenheimer’s latest list. Just like other homebuilders and the broader real estate industry, Beazer Homes USA, Inc. (NYSE:BZH) sees its business slow down when interest rates are high and buyer affordability drops. However, the firm has some key advantages at its disposal. One of these is its adherence to the Department of Energy’s (DOE) zero energy framework that offers a $5,000 tax break to new homes that are able to reduce energy consumption to the extent that a renewable generation system could meet all their requirements. The second is Beazer Homes USA, Inc. (NYSE:BZH)’s lot inventory which places it well for a potential growth in homebuilding activity. As per Oppenheimer, the firm “is primed for growth, with closings expected to accelerate in FY25.”

Beazer Homes USA, Inc. (NYSE:BZH) commented on its competitive advantages during the Q2 2024 earnings call:

“We now have more than 28,000 lots, up 25% from last year, providing excellent visibility into our growing community count. And second, we reached a major energy efficiency milestone this quarter as we have now closed more homes to the DOE’s single-family, zero energy-ready requirements than any other homebuilder in the country.”