Q: With mortgage rates elevated and a shortage of existing home supply is there a home builder name you would prefer? BLDR, TOL, and GRBK. Any Canadian Homebuilder companies to look into? Thanks, Lesley
5i Research Answer:
There is not a lot of choice in Canada, though TCN rents homes in the US and we do like it for real estate exposure. We would prefer TOL in the US at only 7X earnings with the stock showing good momentum (plus a 1.1% dividend). CCS is interesting for a smallcap play but has a more expensive valuation.