Additionally, the executives at TRI Pointe have worked together for over 20 years, so these aren't flippers or teachers turned homebuilders. Chairman Barry Sternlicht, who heads Starwood Capital Group is also the CEO of Starwood (STWD). The company has attracted coverage from as many as three analysts which is far fewer than Toll Brothers with at least 21 analysts covering that company. In other words, TRI Pointe may be relatively unknown among retail investors. Institutional ownership is at 45%. Follow the smart money.
Another new homebuilder stock is Boise Cascade (BCC), which is already up 30% since going public on Feb. 6. Boise Cascade presents a different way to play homebuilding as the company is the second-largest manufacturer of laminated veneer and engineered wood products used in I-joists for building homes. They're also the second-largest manufacturer of plywood in the U.S. The company wrote in its prospectus, that it was well positioned to "take advantage of the recovery that we believe is underway in the U.S. housing market."
Boise Cascade actually grew market share during the housing downturn and also argues that the industry's prospects are improving. "Housing starts increased substantially in 2012 and, as a result, demand for the products we manufacture and distribute has also increased. U.S. single- and multi-family housing starts were 0.87 million in September 2012 on a seasonally adjusted annual rate basis, an increase of 35% from September 2011." Boise also hasn't captured the attention of research analysts making this another "under the radar" stock.
Taylor Morrison hasn't gone public yet, but it's definitely one to put on your watch list. Taylor Morrison Home Corporation is one of America's top ten homebuilders. The Scottsdale, Arizona-based company had planned to raise $250 million but after TRI Pointe's success in public markets, Taylor Morrison's offering has been increased to $500 million. a 75-year-old company, Taylor Morrison generated $1.3 billion in sales for the last 12 months ending Sept. 30, according to a federal filing. Taylor owns homes in Texas, Florida, and California as well as Phoenix.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV