• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Investing A homebuilder stock that could more than double from here
Investing

A homebuilder stock that could more than double from here

by December 13, 2022
by December 13, 2022 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Homebuilder stocks went out of favour this year as the Fed moved to aggressively lift rates.

But now that much of it is in the rearview mirror, it’s a suitable time to go shopping in this space, says Stephen Kim – Head of Housing Research at Evercore ISI

Kim recommends owning a small-cap stock

A name that particularly pops out to him is Meritage Homes Corp (NYSE: MTH) that’s down more than 20% for the year at writing. Explaining why on CNBC’s “Power Lunch”, Kim said:

When a group like the homebuilders comes into favour, a lot of the times, it’s some of the smaller cap names that get a little overlooked and they can actually have bigger moves.

Shares of this real estate development company are especially attractive as they are trading below their book value, the analyst added.

He’s bullish on the construction space in general for 2023.

Kim sees massive upside in Meritage stock

Kim’s “buy” rating on Meritage Homes Corp comes with a price target of $240 a share – that’s a whopping 150% upside from here.

Meritage is one I think has a lot of virtuous qualities; very low leverage, high profitability, a business model that goes for affordability and does spec-building focus on efficiencies.

In its latest reported quarter, the Scottsdale-headquartered firm was well above the Street estimates for earnings.

Last month, the U.S. Census Bureau said new home sales were up 7.5% in October. The Evercore analyst is bullish also because he doesn’t expect home prices to be down as much as expected in 2023 – a view that our data analyst Dan Ashmore shares as well.

The post A homebuilder stock that could more than double from here appeared first on Invezz.

You Might Also Like
  • VIDEO: Forex markets – 2022 review and future predictions
  • Litecoin price: Here’s why LTC has spiked 34% this week
  • Aptos startup Blocto eyes the next billion Web3 users via chain-agnostic wallet
  • Jim Cramer on Salesforce layoffs: ‘this is the first of many’
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Pinterest stock price forecast: Piper Sandler sees a 25% upside
next post
A scattered dot plot could see the FOMC square off against itself

You may also like

The digital pound will not track retail users, UK minister...

January 10, 2023

Zscaler stock opened 10% down on Friday: how come?

December 2, 2022

Coinbase to lay off another 20% of its workforce

January 10, 2023

UK retail sales slip 0.4% as households feel inflation pinch

December 16, 2022

Phantom wallet adds support for Polygon and Ethereum

November 29, 2022

Caterpillar stock price forecast: Bank of America sees a 15%...

January 15, 2023

WWE stock jumped 20% on Friday: find out more

January 6, 2023

Long Straddle Options Strategy: The Ultimate Guide

March 27, 2023

HSBC share price: Winds of change are blowing

January 2, 2023

This is what you should expect from U.S. stocks in...

December 27, 2022

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • How I Triple My Returns With 3x Leveraged ETFs!

      July 10, 2025
    • Want Faster, Lower Risk Trades? Use This Setup

      July 9, 2025
    • The Seasonality Trend Driving XLK and XLI to New Highs

      July 9, 2025
    • Small Caps Are Rotating In — Here’s Why It Matters

      July 9, 2025
    • Amazon extends Prime Day discounts to 4 days as retailers weigh tariffs and price increases

      July 9, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,630 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,919 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,607 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,576 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,449 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,167)
    • Investing (538)
    • Stock (2,661)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • How I Triple My Returns With 3x Leveraged ETFs!

      July 10, 2025
    • Want Faster, Lower Risk Trades? Use This Setup

      July 9, 2025
    • The Seasonality Trend Driving XLK and XLI to New Highs

      July 9, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,167)
    • Investing (538)
    • Stock (2,661)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Unemployment rate falls to 3-month low...

    December 27, 2022

    Retirement Strategies for Senior Citizens to...

    June 2, 2023

    XPeng stock rises 48% from a...

    December 1, 2022
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here