All investors realize the importance of discovering stocks that are about to skyrocket in order to increase their returns. It is difficult to know exactly which stocks or sectors are about to explode, as it is impossible to predict the future.
Nevertheless, Zacks Premium customers can utilize the Zacks Industry Rank Heat Map to discover which industries are currently rallying, and a quick glance at the Heat Map right now reveals that the home building space is currently one of the hottest corners of the market.
The home building industry has endured a positive trend, as it has moved from the 57th best industry to the 18th and into the top 7% on the Zacks Industry Rank List. Home builders have continued to prosper with a 30.57% YTD return, which significantly outpaces the S&P 500’s gains this year.
Now might be the perfect time to invest in this industry in order to avoid missing out on its impressive returns and future outlook. Check out these 5 home builder stocks to buy now:
1. William Lyon Homes (WLH – Free Report)
William Lyon Homes is primarily engaged in the design, construction and sale of homes in California, Arizona, Nevada, and Colorado. William Lyon has exhibited intriguing growth prospects, such as a projected EPS growth of 38.39% and projected sales growth of 21.59%, which compare favorably to the industry averages of 17.26% and 7.31%, respectively.
Also, the company possesses an excellent price/sales ratio of 0.39, and the firm holds an earnings yield of 9.00%, which just edges out the industry average of 8.72%. Furthermore, William Lyon’s share price has increased by 37.87% over the past year. But the gains might not be over for William Lyon Homes, which was recently promoted to a Zacks Rank #1 (Strong Buy).
2. NVR, Inc. (NVR – Free Report)
NVR Inc. is a holding company that operates in two business segments: the construction of homes and financial services. NVR boasts a disciplined business model, focused on maximizing liquidity and minimizing risk. In February 2017, the company’s board of directors authorized the repurchase of $300 million of its outstanding common stock. Furthermore, NVR shares gained 38.77% compared to the industry’s average growth of 30.11%.
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