NEW YORK (TheStreet) -- M/I Homes (MHO - Get Report), Standard Pacific Group (SPF), Beazer Homes (BZH - Get Report), Lennar Corporation (LEN - Get Report), Armstrong World Industries (AWI - Get Report), D.R. Horton (DHI - Get Report), Owens Corning (OC - Get Report) and Ryland Group (RYL) are housing stocks with 82% upside, based on average 12-month price targets.

According to real estate portal Zillow, home values in the U.S. fell 3% sequentially during the March quarter and 1.1% month-on-month. The slackening demand results from the profusion of foreclosures. Besides, the March quarterly numbers of companies in the home building and products sector have been dismal. Masco Corporation ( MAS), USG ( USG), NVR ( NVR) and Meritage Homes Corporation ( MTH) reported results below analysts' consensus expectations.

Consumer spending has improved as sales at U.S. retailers climbed in April 2011. According to a Bloomberg survey, April could see a projected growth of 0.6% in purchases, following an increase of 0.4% in March. Employment data, as payrolls increased consecutively in the last few months, and April's better-than-expected 244,000 jobs could buoy the housing sector by late 2011. Besides, housing affordability remains near record highs and favorable interest rates are other positives.

We have identified eight housing stocks that hold potential to deliver attractive returns over the next one year. Analysts' consensus estimate indicates an average return of 34% for the portfolio and the potential to deliver up to 82% upside over the next one year. These stocks received analysts' buy ratings of 49%.

8. Ryland Group ( RYL) engages in the business of home building and mortgage finance. Ryland's homebuilding operations consist of four regional segments: north, southeast, Texas and west.

Housing gross profit margins averaged 15.2% from 13.9 percent in the first quarter of 2010. Net loss for first quarter 2011 was $19.5 million, which included pretax charges of $9.9 million related to inventory and write-offs. For the same period in 2010, net loss was $14.3 million.

Active communities increased to 218 communities compared to 207 communities and 177 communities for the quarters ended Dec. 2010 and March 2010, respectively. Cash, cash equivalents, and marketable securities stood at $686 million at the end of March 2011 quarter.

Analysts expect the stock to deliver 19% in the next one year with buy ratings of 50%. The stock is trading at 29 times its estimated 2012 earnings.

7. Owens Corning ( OC - Get Report) is a manufacturer of glass fiber reinforcements and other materials for composites, and building materials for residential and commercial use.

During the first quarter of 2011, net sales grew 2% to $1.24 billion from $1.27 billion in the first quarter of 2010. Net earnings were $24 million compared with $48 million in the first quarter of 2010.

Commenting on the financials, Mike Thaman, Owen Corning CEO, said, "Owens Corning delivered profit in line with expectations for the first quarter driven by continued strong performance in the Composites and Roofing businesses. We remain confident in our guidance of $475 million in adjusted EBIT for 2011."

During the quarter, the company invested to expand its composites capacity and convert insulation facilities to produce EcoTouch insulation. The management expects the combined influence of improving economic conditions and recent pricing actions to improve profitability in 2011.

Analysts expect the stock to deliver an upside of 19% with a buy rating of 53%. The stock is trading at 13 times its estimated 2012 earnings.

6. D.R. Horton ( DHI - Get Report) is a U.S.-based homebuilding company and constructs homes in 26 states and 72 metropolitan markets in the country. The company has six homebuilding segments and a financial services segment with homebuilding operations contributing more than 95% of consolidated revenues.

During the second fiscal quarter ended March 2011, net income was $27.8 million, including a non-cash tax benefit of $59.2 million and $14.3 million of pre-tax charges. Net income for the same quarter of fiscal 2010 was $11.4 million. Homebuilding revenue was $733.1 million, compared to $896.8 million in the second quarter of fiscal 2010.

The company's inventory increased by 1,400 during the quarter and supported the demand for new homes in the spring season. The company's balance sheet remains strong with homebuilding cash and marketable securities of $1.4 billion. Analysts polled by Bloomberg give the stock 35% buy ratings with 21% upside potential. The stock is trading at 20 times its estimated 2012 earnings.

5. Armstrong World Industries ( AWI - Get Report) is a manufacturer of flooring products and ceiling systems used in the construction and renovation of residential, commercial and institutional buildings.

For the first quarter of 2011, net sales increased 4% to $685.2 million compared to the first quarter 2011, attributable to improved pricing and favorable product mix.

Operating income for 2011 first quarter increased to $52.1 million compared to $13.4 million in the same quarter of 2010; net income improved to $13.5 million versus a net loss of $19.4 million in the same quarter of the earlier year.

Net operating income and net income increased considerably on the back of cost rationalization measures initiated in 2010 that resulted in lower manufacturing, selling and administration costs in the present quarter.

Armstrong projects new home starts at 600,000 in the U.S. and anticipates repair and remodel activity in North America to track 2010 levels. Analysts expect the stock to deliver 22% in the next one year with buy ratings of 78%. The stock is trading at 15 times its estimated 2012 earnings.

4. Lennar Corporation ( LEN - Get Report) is a homebuilder and provider of financial services.

During the first quarter of 2011, the company's net profit improved to $27.4 million, compared to a net loss of $6.5 million in the same period last year. However, revenue was down 3% to $558 during the same period.

Lennar Homebuilding reported operating earnings for first quarter 2011at $35.5 million, compared to $5.5 million in the same quarter in the prior year. Subsequently, gross margin and operating margin on home sales stood at 20% and 3.6%, improving 80 bps and 20 bps, respectively, from last year.

Other arms like Lennar Financial Services and Rialto Investments' operating earnings were $1.2 million and $11 million, respectively, as opposed to operating losses in the first quarter of 2010.

The company's homebuilding cash and cash equivalents stood at $1 billion at the end of the March quarter and homebuilding debt to total capital, net of cash and cash equivalents is 44.5%. Analysts expect 29% upside in the next one year with buy ratings of 45%. The stock is trading at 18 times its estimated 2012 earnings.

3. Beazer Homes ( BZH - Get Report) is a U.S.-based diversified builder.

During the 2011 first quarter, net sales were $127.5 million compared to $192.5 million in the same period last year and $110 million in the previous quarter. Excluding impairments and abandonments, homebuilding gross profit margin was 12.3%, compared to 17.4% in the first quarter of 2010 and 10.7% in the prior quarter. However, including impairments and abandonments, homebuilding gross profit margin was -2.1% for the quarter.

Commenting on the future, Ian McCarthy, CEO of Beazer Homes, said in a press statement, "However, we did see seasonal improvement with orders and gross margins up over the first quarter of fiscal 2011. We are hopeful that the latest improvements in employment will help lift consumer confidence in the coming quarters, which is necessary for any significant recovery in housing to occur."

The stock is expected to deliver 29% returns in the next one year with analysts' buy ratings of 40%.

2. Standard Pacific Group ( SPF) is a geographically diversified builder of single-family homes with operations in urban markets like California, Florida, Arizona, Texas.

While home pricing was under stress during the last few quarters, gross margin remained above 20% for the sixth straight quarter. Gross margin for the March 2011 quarter was 20.5%, compared to 22.7% in the year-ago quarter.

Standard Pacific opened 18 new communities during the March quarter and expects to open another 22 communities by the first half of the year. For the quarter, the company approved purchase of 2,000 lots amounting to $122 million and purchased 1,100 lots for $87 million.

For the 2011 first quarter, home sale revenues were $143.7 million compared to $174.9 million in earlier year first quarter. The company generated a net loss of $14.8 million compared to net loss of $5.1 million in the first quarter of 2010.

The company holds $620 million of cash with $110 million of operating cash flows. Based on consensus estimates, the stock is expected to deliver 47% in a year's time.

1. M/I Homes ( MHO - Get Report) is a builder of single-family homes.

During the first quarter 2011, the company's selling, general and administrative expenses improved, relative to the year-ago quarter, and generated a seventh straight quarter of positive adjusted EBITDA.

During the quarter, MI opened 12 new communities and expanded presence in Texas through the acquisition of San Antonio-based TriStone Homes.

The company generated positive cash flows from its operations during the quarter and ended with $127 million cash and a net debt to net capital ratio of 0.33.

Analysts polled by Bloomberg give the stock 75% buy ratings with an upside potential of 82% over the next one year. The stock is currently trading at 25.2 times its estimated 2011 earnings.

>>To see these stocks in action, visit the 8 Housing Stocks With Upside portfolio on Stockpickr.