NEW YORK (TheStreet) -- After positive housing data on Wednesday, David Peltier, TheStreet's portfolio manager of the Stocks Under $10 newsletter, listed some of his top homebuilding picks. 

The housing starts data released by the Census Bureau this morning was the best result in roughly five years, a 23% gain. This news should be a great thing for homebuilders, Peltier said. 

His first pick is Standard Pacific (SPF), which currently trades just above $8 per share. 

The stock is only up 12% in 2013, which lags the S&P 500 by nearly 13% year-to-date. Peltier thinks the company's pricing power and exposure to California could boost the share price into the double digits in 2014. 

Another stock with solid potential is Builders FirstSource (BLDR), which currently trades at just under $7.  Peltier said this company just reported a strong earnings quarter and expanded margins had expanded. 

He concluded that if the building supply company can continue to take market share, it should hit $9 sometime in 2014.

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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