Are you looking to capitalize on the recent surge in real estate stocks? If so, you’re in luck because there are still opportunities to make profitable investments in the housing sector. The SPDR S & P Homebuilders ETF (XHB) and the iShares U.S. Home Construction ETF (ITB) both experienced significant gains of over 10% last week, marking their best performances in 2024. Investors flocked to real estate-connected holdings on Thursday in anticipation of potential interest rate cuts by the Federal Reserve, causing a shift away from big technology stocks.
If you’re wondering which stocks are the most promising in this sector, CNBC Pro has you covered. By screening for stocks in these ETFs with buy ratings from at least 55% of analysts and an average price target suggesting upside of at least 10%, they’ve identified the top five contenders. One of the companies that made the cut is homebuilder Toll Brothers, with 55% of analysts giving it a buy rating and an average price target indicating a potential 15% increase in share price. Wells Fargo analyst Sam Reid has named Toll Brothers as his top builder pick, citing its strong performance and historically attractive valuation.
Another noteworthy stock on the list is housing product maker Azek, with approximately two-thirds of analysts recommending it as a buy. The average price target suggests a nearly 20% increase in shares, building on the company’s 14% gain in 2024. Benchmark analyst Reuben Garner lauds Azek as a leading producer of outdoor living products, positioning it well for future growth in this sector.
Lastly, furniture stock Arhaus also stands out with about two-thirds of analysts giving it a buy rating. After a stellar year with shares climbing over 36%, Wall Street foresees further potential for growth, with an average price target indicating over 16% upside in the next year. Barclays analyst Seth Sigman highlights Arhaus as a company to watch in the retail market due to its market share gains and strategic positioning.
If you’re considering diving into the world of real estate stocks, these top picks identified by CNBC Pro could be worth exploring. With the housing sector showing strong momentum and potential for future growth, now may be the perfect time to capitalize on these opportunities. Stay ahead of the game with Extreme Investor Network for more exclusive insights and expert analysis on the latest investment trends.