The top performing homebuilder stocks YTD as sector maneuvers challenging outlook

The homebuilding sector continues to navigate a challenging environment, with the NAHB/Wells Fargo Housing Market Index remaining below the critical 50 mark throughout the year, ticking up only marginally to 39 in December.

Low home affordability, elevated construction costs, and persistent macroeconomic uncertainty have weighed heavily on builder sentiment, creating a mixed landscape for homebuilder stocks.

NAHB chief economist Robert Dietz noted that “regulatory costs and material prices remain stubbornly high.” Rising inventory has also increased competition for newly built homes, adding pressure to an already constrained market.

Market adjustments have become increasingly common as builders work to move inventory. In December, 40% of builders reported price cuts – the second consecutive month at or above that threshold since May 2020. The use of sales incentives reached 67%, the highest share in the post-pandemic period.

The following list ranks homebuilding companies (XHB) in descending order based on their year-to-date performance.

The stocks are also ranked by Seeking Alpha’s Quant metrics, which bases each stock’s performance on certain critical quantitative measures, such as valuation, growth, profitability, and momentum. Each stock is rated on a scale of 1 to 5, with any rating above 3.5 indicating a bullish rating. A score of 2.5 or below represents a bearish profile.

Here are the top 15:

1. Cyrela Brazil Realty S.A. Empreendimentos e Participações (CYRBY) - YTD performance: 84.75%; SA Quant rating: 3.27 (Hold)
2. Installed Building Products, Inc. (IBP) - YTD performance: 51.28%; SA Quant rating: 3.31 (Hold)
3. TopBuild Corp. (BLD) - YTD performance: 38.17%; SA Quant rating: 2.80 (Hold)
4. Cavco Industries, Inc. (CVCO) - YTD performance: 37.60%; SA Quant rating: 4.54 (Strong Buy)
5. Persimmon Plc (PSMMY) - YTD performance: 20.17%; SA Quant rating: 2.76 (Hold)
6. Green Brick Partners, Inc. (GRBK) - YTD performance: 15.72%; SA Quant rating: 4.10 (Buy)
7. PulteGroup, Inc. (PHM) - YTD performance: 11.72%; SA Quant rating: 2.95 (Hold)
8. Toll Brothers, Inc. (TOL) - YTD performance: 10.75%; SA Quant rating: 2.74 (Hold)
9. D.R. Horton, Inc. (DHI) - YTD performance: 8.28%; SA Quant rating: 2.77 (Hold)
10. Taylor Morrison Home Corporation (TMHC) - YTD performance: 0.38%; SA Quant rating: 2.73 (Hold)
11. M/I Homes, Inc. (MHO) - YTD performance: 0.04%; SA Quant rating: 2.74 (Hold)
12. Champion Homes, Inc. (SKY) - YTD performance: -1.35%; SA Quant rating: 4.11 (Buy)
13. KB Home (KBH) - YTD performance: -4.52%; SA Quant rating: 2.76 (Hold)
14. NVR, Inc. (NVR) - YTD performance: -7.55%; SA Quant rating: 2.97 (Hold)
15. Tri Pointe Homes, Inc. (TPH) - YTD performance: -9.05%; SA Quant rating: 3.06 (Hold)