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- Top 9 US Homebuilder and Construction Stocks In 2023
Top 9 US Homebuilder and Construction Stocks In 2023
UPDATED Jul 25, 2024
Home building companies are those that buy land, develop it, and then build houses to sell. Some home builders also build homes and condominiums to rent, or to sell to REITs.
Most countries face a housing shortage - even those with declining populations. Residential and demographic patterns change over time, which means there is an ongoing need for new housing. This steady demand acts as a tailwind for home builders.
Home building is a cyclical industry, but well managed construction companies have managed to create significant value over time.
Revenues are closely correlated with the US housing starts index which is affected by mortgage rates. Margins are affected by the cost of building materials as well as inventory levels.
Current monetary policy has been a bit of a headwind for the homebuilding industry. Rising interest rates and rising inflation has meant that it’s more expensive for homebuyers to build a new home in terms of materials costs and in terms of debt financing.
These conditions could be setting the scene for a slight downturn in the homebuilding industry, however the cyclical nature of the industry means that each downturn in building activity sets up the next buying opportunity for investors.
Most building activity is quite conventional, but there are innovators experimenting with new materials and construction methods, including 3D house printing and energy efficient buildings.
1 company
Provides three-dimensional (3D) printers and on-demand parts services to industrial and commercial customers in Europe, the Middle East, Africa, the Asia Pacific, and the Americas.
Why VJTT.Y?
Innovator in the construction industry pursuing new building techniques.
- Voxeljet is a leading provider of industrial 3D printing solutions, specializing in the production of large-scale 3D printers and on-demand parts services for various industries, including the construction sector.
- Voxeljet’s 3D printing technology offers a faster, more efficient, and sustainable alternative to traditional construction techniques, contributing to the growing trend of eco-friendly building practices.
- The company has recently launched its next-generation 3D printers, featuring improved printing speeds and enhanced capabilities, better catering to the needs of the construction industry.
- Voxeljet has entered into strategic partnerships and collaborations with major construction companies, architects, and designers to explore and promote the use of 3D printing in residential and commercial building projects.
- Total revenues increased 16.1% to €5.735M in 3Q22 from €4.938M in 3Q2 illustrating the growing use cases for Voxeljet’s technology. Gross profit margin in Systems decreased to 24.1% in 3Q22 vs. 44.1% in 3Q21. This decrease was mainly due to a less favorable product mix regarding our printer sales.
- The company plans to invest in research and development, exploring innovative 3D printing materials, technologies, and processes to stay ahead of industry trends and maintain its competitive edge in the industrial 3D printing market.
Rewards
Earnings have grown 0.8% per year over the past 5 years
Risks
Highly volatile share price over the past 3 months
Does not have a meaningful market cap ($2M)
Latest financial reports are more than 6 months old
Simply Wall St analyst Richard Bowman and Simply Wall St have no position in any of the companies mentioned.