NEW YORK (TheStreet) -- TRI Pointe Homes (TPH - Get Report), one of the largest homebuilders in the U.S., will report second-quarter earnings Monday before the opening bell. The recent climb in residential home construction would suggest a strong quarter is on the horizon for TRI Pointe, whose share are down some 4% on the year.

Plus, given that better-than-expected results that have already been released from D.R. Horton (DHI - Get Report) and Lennar (LEN - Get Report), it would seem homebuilders are on the rebound, yielding 7% year-to-date gains in the SPDR S&P Homebuilders ETF (XHB).

In the case of TRI Pointe, which grew first-quarter revenue 55% year over year, the company is starting to increase its profit margins by selling higher-priced homes. Combined with a strong backlog and the pace at which it's growing communities, suggesting strong pent-up demand, TRI Pointe is poised to offset the recent rise in its expenses, driven by land and construction costs.

At the same time, the company has begun to expand in areas like California where employment growth is high. And this makes sense because higher employment rates often correlate to a demographic that can afford new or existing homes.

This means, while the Irvine, Calif.-based company hasn't participated in the homebuilders' stock rally, there are many more reasons to expect that its stock, which has a consensus buy rating and average analyst 12-month price target of $18 -- suggesting almost 25% gains -- should climb much sooner than later. In short, buying TPH stock today -- ahead of Monday's results -- looks like smart, profitable move.

For the quarter that ended in June, the average analyst earning-per-share estimate calls for 25 cents a share on revenue of $491 million, translating to year-over-year increase of 31% and 462%, respectively. For the full year, ending in December, earnings are projected to climb 101% year-over-year to $1.17 a share, while revenue of $2.42 billion calls for a 42% year-over-year surge.

Right away, these projections -- especially the 462% jump in second-quarter revenue -- stand out. It also suggests how low TRI Pointe results were last year, explaining the struggles in its stock. But the quarters ahead are where investors should be focusing. And with the company projected to grow earnings at an average rate of 17% in the next five years, TRI Pointe's money-making abilities have only just begun.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.