LSEAW - Hovnanian Enterprises: Strong Additional Upside Is Warranted
2024-07-05 15:40:58 ET
Summary
- Hovnanian Enterprises is a cheap homebuilder catering to a wide audience with homes ranging from $135,000 to $1.77 million.
- Despite a decline in revenue and profitability in 2023, the company has seen growth in orders and deliveries in 2024.
- With attractively priced shares and potential industry weakness, Hovnanian Enterprises is upgraded to a "strong buy" based on impressive performance.
When it comes to publicly traded companies, there are many homebuilders that investors can choose from. But one of the cheapest, in my opinion, has got to be Hovnanian Enterprises, Inc. ( HOV ). Since the founding of the firm's predecessor back in 1959, management has delivered more than 369,000 homes. Even so, with a market capitalization of $824.5 million as of this writing, the company is not terribly large. This doesn't mean, however, that management has not grown it into a sizable operation. As of the end of 2023, excluding unconsolidated joint ventures that it has a stake in, it operates in 113 communities spread across 13 different states here in the US. By focusing on first-time buyers as well as first-time and second-time move-up buyers, luxury buyers, active lifestyle buyers, and even empty nesters, the company has established a nice presence for itself in the market. And with some homes as cheap as $135,000, while others are as much as $1.77 million, the company does truly cater to a wide audience....
Hovnanian Enterprises: Strong Additional Upside Is Warranted