HomeNewsTop 5 homebuilders to buy amid a booming housing market

Top 5 homebuilders to buy amid a booming housing market

Mircea Vasiu

House prices in the United States have reached record-high levels. Here are five homebuilders to buy to benefit from the booming housing mark: Owens Corning, Pulte Group, NVR, Whirlpool Corporation, and Masco Corporation.

The United States housing market recovered from the 2008-2009 housing crisis, and home prices have reached record highs during the COVID-19 pandemic. The house prices grew by over 18% YoY in September 2021, and the trend has continued unabated ever since.

As such, homebuilders are well-positioned to fight inflation as the increase in house prices overcomes the inflation rate. In fact, real estate is a form of hedge against inflation, an alternative investment compared to long-only stocks trading.

Here are five homebuilders to consider adding to your portfolio as the housing market is booming: Owens Corning, Pulte Group, NVR, Whirlpool Corporation, and Masco Corporation.

Owens Corning

Owens Corning makes roofing and insulation and it is based in Toledo, Ohio. It sells its products through a network of distributors and home centers, as well as directly to contractors and it stands to benefit from the booming housing market.

The stock price is up +8.8% YTD and the company pays a dividend too.

Pulte Group

Pulte Group is another player in the US homebuilding industry. It buys land and builds houses on it, thus sitting at the forefront of the industry’s boom.

The stock price is up +440.18% in the last decade and the company pays a dividend too.

NVR

NVR is another American homebuilder. Based in Reston, Virginia, NVR employs close to 7,000 people, and it builds single-family homes, townhomes, and condominiums.

Its stock price has been up 6.16% in the past twelve months, and it does not pay a dividend.

Whirlpool Corporation

Whirlpool Corporation manufactures and sells home appliances. Headquartered in Benton Harbor, Michigan, Whirlpool was founded in 1911.

The company pays a dividend, and it recently announced an increase of 25% as well as a stock buyback plan.

Masco Corporation

Masco is an American company from Livonia, Michigan. It sells home improvement and building products and its stock price has been up 6.69% in the last twelve months.

The stock trades at a P/E Non-GAAP (TTM) ratio of 15.60, lower than the 19.61 sector median.