Top 3 Picks
2026 Outlook
Looking ahead to 2026, the sector is expected to benefit from population growth, urbanization trends, and increased infrastructure spending, potentially driving a 10-15% annual revenue growth for major players. However, challenges like supply chain volatility and regulatory changes may temper expansion, though easing monetary policies could boost demand. Overall, the sector's strong market caps, such as DHI's $51.4B, indicate resilience and a positive trajectory toward sustained profitability.
Complete Rankings
| Rank | Stock | Score | Price | Market Cap |
|---|---|---|---|---|
|
1
|
Hovnanian Enterprises Inc. Dep Shr Srs A Pfd
|
64.1 | $20.55 | -- |
|
2
|
Meritage Homes Corporation
|
62.2 | $66.23 | $5.2B |
|
3
|
United Homes Group, Inc Class A Common Stock
|
62.1 | $1.59 | $241M |
|
4
|
D.R. Horton Inc.
|
60.6 | $145.72 | $51.4B |
|
5
|
Tri Pointe Homes, Inc.
|
60.1 | $31.57 | $3.0B |
|
6
|
KB Home
|
59.6 | $57.07 | $4.2B |
|
7
|
NVR, Inc.
|
59.6 | $7278.87 | $22.2B |
|
8
|
M/I Homes, Inc.
|
59.3 | $127.84 | $3.9B |
|
9
|
Taylor Morrison Home Corporation Common Stock
|
58.7 | $58.83 | $6.6B |
|
10
|
Toll Brothers, Inc.
|
58.0 | $135.58 | $13.5B |
|
11
|
LGI Homes, Inc.
|
57.4 | $41.71 | $1.2B |
|
12
|
CENTURY COMMUNITIES, INC.
|
56.9 | $58.94 | $1.9B |
|
13
|
Smith Douglas Homes Corp.
|
56.6 | $16.85 | $927M |
|
14
|
Hovnanian Enterprises, Inc. Class A
|
56.3 | $97.78 | $774M |
|
15
|
Beazer Homes USA, Inc. New
|
56.0 | $20.25 | $741M |
In-Depth Analysis: Top Homebuilders Stocks
HOVNP
Hovnanian Enterprises Inc conducts all of its homebuilding and financial services operations . The company designs, constructs, markets, and sells single-family detached homes, attached townhomes and condominiums, urban infill, and active lifestyle homes in planned residential developments. It has two distinct operations: homebuilding and financial services. Its homebuilding operations are divided geographically into three segments; Northeast which includes Delaware, Maryland, …
Hovnanian Enterprises Inc. matters in the Homebuilders sector due to its comprehensive operations in designing, constructing, and selling diverse housing options like single-family homes and urban infill developments, which address growing demand for affordable and varied residential properties. Its presence in planned residential developments positions it as a key player catering to demographic shifts toward suburban and active lifestyle communities.
With a Tradestie Score of 64.1/100, Hovnanian exhibits moderate financial health, suggesting reasonable operational efficiency despite limited available data. The company's diversified revenue from homebuilding and financial services likely supports profitability by mitigating risks associated with housing market fluctuations.
By 2026, Hovnanian's focus on high-demand housing segments like urban infill and active lifestyle homes could capitalize on projected U.S. population growth and urbanization trends, potentially driving revenue increases. The Tradestie Score of 64.1/100 indicates a stable base for improvement, especially if interest rates stabilize and housing demand rises. Investors may find value in HOVNP's preferred shares for their potential dividend yields amid sector recovery, making it a strategic buy for long-term portfolio diversification.
MTH
Meritage Homes Corp is engaged as a designer and builder of single-family attached and detached homes. It has operations in three regions: West, Central, and East, comprising ten states: Arizona, California, Colorado, Texas, Florida, Georgia, North Carolina, South Carolina, Tennessee, and Utah. The company operates with two principal business segments: homebuilding and financial services. The homebuilding segments are engaged in …
Meritage Homes Corporation is a key player in the Homebuilders sector due to its operations across ten states in three regions, including high-growth areas like California, Texas, and Florida, allowing it to address diverse housing demands and mitigate regional risks. This broad geographic presence enables the company to capitalize on national trends in single-family home construction, positioning it as a significant contributor to the sector's overall market dynamics.
Meritage Homes exhibits moderate profitability with a 9.0% profit margin and a 10.5% ROE, indicating efficient use of equity and solid financial health despite a -10.8% revenue growth, which may reflect short-term market challenges. The low P/E ratio of 8.9 further suggests the stock is undervalued relative to earnings, potentially offering a buffer for future performance improvements.
By 2026, Meritage Homes' undervalued P/E ratio of 8.9 makes it an attractive buy, as historical housing market recoveries could drive earnings growth and stock appreciation. The company's 10.5% ROE highlights operational efficiency, enabling it to benefit from anticipated population growth in its regions like Texas and Florida. Moreover, with a Tradestie Score of 62.2 indicating moderate potential, investors can expect gains from increasing demand for single-family homes amid easing economic conditions.
UHG
United Homes Group Inc operates as a homebuilder which operates with a land-light idea in the Southeast. The company currently has a presence in South Carolina, North Carolina, and Georgia and focuses on providing high-quality, affordable homes for the entry-level and first-move-up segments. The company has three reportable segments: GSH South Carolina, Rosewood, and Other.
United Homes Group matters in the Homebuilders sector due to its innovative land-light operating model, which minimizes capital tied to land ownership and enhances flexibility in the Southeast region. Its targeted focus on affordable, high-quality homes for entry-level and first-move-up buyers in high-growth states like South Carolina, North Carolina, and Georgia positions it to address increasing demand in underserved market segments.
United Homes Group's negative profit margin of -4.5% and ROE of -51.7% indicate significant operational challenges and inefficient use of equity, highlighting potential issues in cost management amid market headwinds. Despite a revenue decline of -23.5%, the company's Tradestie Score of 62.1/100 suggests moderate overall financial health, possibly driven by strategic positioning in growing regions.
By 2026, United Homes Group's land-light model could enable rapid expansion and cost efficiencies as housing demand rebounds in the Southeast, potentially offsetting the current -23.5% revenue growth decline. The company's focus on affordable homes aligns with expected population growth and rising entry-level buyer interest in states like North Carolina and Georgia, fostering opportunities for market share gains. Additionally, improving economic conditions could enhance profitability, turning around the negative profit margin and ROE metrics as the sector recovers.
DHI
With operations in 126 markets across 36 states D.R. Horton is the leading homebuilder in the United States. D.R. Horton mainly builds single-family detached homes (87% of home sales revenue) and offers products to entry-level, move-up, luxury buyers, and active adults. The company offers homebuyers mortgage financing and title agency services through its financial services segment. D.R. Horton's headquarters are …
D.R. Horton matters in the Homebuilders sector as the leading U.S. homebuilder, operating in 126 markets across 36 states and generating 87% of revenue from single-family detached homes, which positions it to serve diverse buyer segments from entry-level to luxury and active adults.
D.R. Horton's profitability is evidenced by a 10.5% profit margin and a 14.3% ROE, indicating efficient operations and strong returns on equity; however, a -3.2% revenue growth reflects recent challenges, potentially due to market headwinds, while a P/E ratio of 12.6 suggests the stock may be undervalued.
By 2026, D.R. Horton's market leadership and broad geographic presence could drive growth amid expected housing demand recovery, supported by its diverse product offerings for various buyer types. The company's P/E ratio of 12.6 indicates undervaluation relative to historical averages, presenting an opportunity for capital appreciation. Furthermore, with a solid ROE of 14.3%, the firm is poised to efficiently reinvest profits into expansion as economic conditions improve.
TPH
Tri Pointe Homes Inc is an American construction company that focuses on residential construction. The company is engaged in the design, construction, and sale of single-family attached and detached homes in different states across the United States. Its operations are organized into two principal businesses: homebuilding. which generates key revenue, and financial services. The homebuilding business has three reportable operating …
Tri Pointe Homes Inc. matters in the Homebuilders sector as a leading U.S. residential construction company, designing and building single-family homes across multiple states, which positions it as a key contributor to national housing supply and economic growth.
TPH's 8.3% profit margin and 9.5% ROE reflect moderate profitability and efficient use of equity, indicating a stable financial foundation despite challenges. However, the -25.3% revenue growth underscores recent market headwinds, while the 9.4 P/E ratio suggests potential undervaluation.
By 2026, TPH's low P/E ratio of 9.4 could deliver strong returns as the housing sector rebounds from current declines, driven by anticipated population growth and urbanization increasing demand for single-family homes. The company's established operations across various states provide resilience and scalability, potentially capitalizing on easing interest rates and economic recovery. Additionally, a Tradestie Score of 60.1 indicates a reasonable entry point for investors seeking value in the homebuilders space.
KBH
KB Home is an American construction company that focuses on residential construction in the United States. The company builds single-family homes and communities across different geographical segments which include the West Coast which also derives the majority of the revenue, Southwest, Central, and Southeast. The company operates in several markets and focuses on first-time and move-up homebuyers. It also invests …
KB Home is a significant player in the U.S. homebuilders sector, specializing in single-family residential construction with a dominant presence in the West Coast, which generates the majority of its revenue and influences regional housing trends. Its operations across diverse geographical segments like the Southwest and Central regions contribute to national housing supply and market stability, making it a key indicator of sector performance.
KB Home's profitability is moderate, with a profit margin of 6.9% indicating reasonable cost management and a ROE of 10.8% showing effective use of shareholders' equity to generate returns. However, the negative revenue growth of -15.3% reflects recent challenges, such as market volatility, though the P/E ratio of 9.3 suggests potential undervaluation and financial resilience.
By 2026, KB Home is poised for growth as housing demand rebounds, particularly in its high-revenue West Coast markets, potentially reversing the -15.3% revenue decline and leveraging its established operational footprint. The current P/E ratio of 9.3 offers an attractive valuation for investors, indicating undervaluation relative to earnings potential in a recovering economy. Additionally, with a ROE of 10.8%, the company demonstrates strong equity efficiency, positioning it to capitalize on demographic trends like population growth in key regions.
NVR
NVR Inc is a United States-based homebuilding company. It builds single-family detached homes, townhomes, and condominium buildings under three brands, Ryan Homes, NVHomes, and Heartland Homes. The company through its subsidiary also operates a mortgage banking and title services business. The homebuilding segment includes four geographic areas of the Mid-Atlantic, North East, Mid-East, and South East.
NVR Inc. is a prominent player in the Homebuilders sector, distinguished by its focus on building diverse housing options like single-family homes and townhomes under brands such as Ryan Homes and NVHomes, while integrating mortgage banking and title services through subsidiaries to streamline the homebuying process.
NVR exhibits solid profitability with a 13.6% profit margin and a high 34.8% return on equity, reflecting efficient use of equity and strong financial health despite recent challenges. However, the -4.9% revenue growth indicates short-term headwinds, balanced by a reasonable P/E ratio of 16.1 that suggests the stock is attractively valued relative to earnings.
By 2026, NVR's high ROE of 34.8% positions it for potential outperformance as housing demand recovers, leveraging its integrated services to gain a competitive edge in the sector. The company's established brands and operational efficiency could drive revenue rebound from the current -4.9% growth, making its P/E of 16.1 an appealing entry point for long-term investors. Overall, NVR's vertical integration and financial resilience make it a strong candidate for growth in an improving economic environment.
MHO
M/I Homes Inc is an American construction company that focuses on residential construction. It consists of two distinct operations: homebuilding and financial services. The homebuilding operations are spread into the Midwest, Mid-Atlantic, and Southern regions, and the financial services operations support homebuilding operations by providing mortgage loans and title services to the customers of homebuilding operations. Homebuilding operations comprise a …
M/I Homes Inc. matters in the Homebuilders sector due to its diversified operations across the Midwest, Mid-Atlantic, and Southern regions, enabling it to capitalize on varying regional housing demands. Its integrated financial services complement homebuilding activities, providing a competitive edge in offering comprehensive residential solutions.
M/I Homes exhibits strong profitability with a 10.6% profit margin and a 15.8% ROE, indicating efficient operations and effective equity utilization. Despite a -1.0% revenue growth, the low P/E ratio of 7.6 suggests the company is undervalued, reflecting potential financial resilience in a challenging market.
Investors should consider buying M/I Homes stock in 2026 given its P/E ratio of 7.6, which indicates undervaluation and room for appreciation as housing demand rebounds. The company's 15.8% ROE highlights strong return potential and operational efficiency, likely to drive earnings growth amid sector recovery. Additionally, its regional diversification positions it to benefit from anticipated increases in residential construction activity by 2026.
TMHC
Taylor Morrison Home Corp is an American residential construction company engaged in residential homebuilding and the development of lifestyle communities. It designs, builds, and sells single and multi-family detached and attached homes in traditionally high growth markets for entry level, move-up, and resort lifestyle buyers. The company has four reportable segments: East, Central, West, and Financial Services. The majority of …
Taylor Morrison Home Corp stands out in the Homebuilders sector as a leading residential construction company that designs, builds, and sells single and multi-family homes in high-growth markets, catering to entry-level and move-up buyers. Its focus on developing lifestyle communities addresses the increasing demand for quality housing in expanding urban areas, positioning it as a key contributor to sector innovation and market expansion.
Taylor Morrison's profitability is robust, evidenced by a 10.2% profit margin and a 14.4% ROE, indicating efficient operations and strong returns on shareholder equity. Despite a -1.2% revenue growth reflecting recent market headwinds, the low P/E ratio of 7.1 suggests the company is undervalued, supporting overall financial health.
By 2026, TMHC's low P/E ratio of 7.1 presents a compelling value opportunity as the homebuilders sector rebounds from current challenges. The company's strong ROE of 14.4% underscores its potential for sustained profitability amid expected increases in housing demand due to demographic shifts and economic recovery. Furthermore, with a Tradestie Score of 58.7, TMHC offers a balanced investment profile that could deliver outsized returns as market conditions improve.
TOL
Toll Brothers is the leading luxury homebuilder in the US, operating in over 60 markets across 24 states. The Fort Washington, Pennsylvania-headquartered homebuilder caters to affluent first-time, move-up, active-adult, and second-homebuyers. Toll Brothers' traditional build-to-order strategy has shifted in recent years to a greater mix of speculative, or "quick move-in" homes. The homebuilder has also expanded its price points, with …
Toll Brothers stands out as the leading luxury homebuilder in the US, operating in over 60 markets across 24 states and catering to affluent buyers through its specialized build-to-order strategy, which differentiates it in the competitive homebuilders sector.
Toll Brothers exhibits strong profitability with a 12.3% profit margin and a 16.9% ROE, demonstrating efficient equity utilization and solid earnings generation; however, its 2.7% revenue growth and a low P/E ratio of 10.1 suggest potential undervaluation amid moderate expansion.
With a P/E ratio of 10.1, Toll Brothers appears undervalued relative to peers, providing an attractive entry point for investors anticipating housing market recovery by 2026. The company's 16.9% ROE and leadership in luxury segments position it to capitalize on growing demand from affluent buyers amid potential interest rate stabilization and persistent housing shortages.
Methodology
Stocks are ranked using the Tradestie Score, a proprietary 0-100 rating that combines fundamental quality (profitability, balance sheet strength), growth metrics (revenue and earnings growth), valuation (P/E, PEG ratio), and momentum factors. Scores are updated daily based on the latest market data. Learn more about our methodology.