Sectors & IndustriesReal EstateReal Estate - Development

Best Real Estate Development Stocks to Buy Now (2023)

Top real estate development stocks in 2023 ranked by overall Zen Score. See the best real estate development stocks to buy now, according to analyst forecasts for the real estate - development industry.

According to Zen Score, the 3 best real estate development stocks to buy right now are:

Landsea Homes (NASDAQ:LSEA) is the top real estate development stock with a Zen Score of 47, which is 23 points higher than the real estate development industry average of 24. It passed 15 out of 33 due diligence checks and has strong fundamentals. Landsea Homes has seen its stock lose -28.85% over the past year, underperforming other real estate development stocks by -6 percentage points.

Landsea Homes has an average 1 year price target of $7.50, an upside of 22.15% from Landsea Homes's current stock price of $6.14.

Landsea Homes stock has a consensus Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Landsea Homes, 33.33% have issued a Strong Buy rating, 0% have issued a Buy, 66.67% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Forestar Group (NYSE:FOR) is the second best real estate development stock with a Zen Score of 45, which is 21 points higher than the real estate development industry average of 24. It passed 15 out of 33 due diligence checks and has strong fundamentals. Forestar Group has seen its stock lose -10.27% over the past year, overperforming other real estate development stocks by 13 percentage points.

Forestar Group has an average 1 year price target of $18.17, an upside of 20.15% from Forestar Group's current stock price of $15.12.

Forestar Group stock has a consensus Buy recommendation according to Wall Street analysts. Of the 4 analysts covering Forestar Group, 50% have issued a Strong Buy rating, 0% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

American Realty Investors (NYSE:ARL) is the third best real estate development stock with a Zen Score of 36, which is 12 points higher than the real estate development industry average of 24. It passed 12 out of 33 due diligence checks and has average fundamentals. American Realty Investors has seen its stock return 82.52% over the past year, overperforming other real estate development stocks by 105 percentage points.

Out of 3 real estate development stocks that have issued dividends in the past year, the 3 real estate development stocks with the highest dividend yields are:

Cto Realty Growth (NYSE:CTO) has an annual dividend yield of 6.85%, which is 3 percentage points higher than the real estate development industry average of 3.78%. Cto Realty Growth's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Cto Realty Growth's dividend has shown consistent growth over the last 10 years.

Cto Realty Growth's dividend payout ratio of -1,658.9% indicates that its high dividend yield might not be sustainable for the long-term.

Irsa Investments & Representations (NYSE:IRS) has an annual dividend yield of 3.5%, which is the same as the real estate development industry average of 3.78%. Irsa Investments & Representations's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Irsa Investments & Representations's dividend has not shown consistent growth over the last 10 years.

Irsa Investments & Representations's dividend payout ratio of 0% indicates that its dividend yield might not be sustainable for the long-term.

Indus Realty Trust (NASDAQ:INDT) has an annual dividend yield of 1%, which is -3 percentage points lower than the real estate development industry average of 3.78%. Indus Realty Trust's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Indus Realty Trust's dividend has not shown consistent growth over the last 10 years.

Indus Realty Trust's dividend payout ratio of 110% indicates that its dividend yield might not be sustainable for the long-term.

Real estate development stocks were down -0.62% in the last day, and down -1.42% over the last week.

We couldn't find a catalyst for why real estate development stocks are down.

Based on WallStreetZen's Valuation Score, the 3 most undervalued real estate development stocks right now are:

Landsea Homes (NASDAQ:LSEA) is the most undervalued real estate development stock based on WallStreetZen's Valuation Score. Landsea Homes has a valuation score of 100, which is 68 points higher than the real estate development industry average of 32. It passed 7 out of 7 valuation due diligence checks.

Landsea Homes's stock has dropped -28.85% in the past year. It has underperformed other stocks in the real estate development industry by -6 percentage points.

Forestar Group (NYSE:FOR) is the second most undervalued real estate development stock based on WallStreetZen's Valuation Score. Forestar Group has a valuation score of 71, which is 39 points higher than the real estate development industry average of 32. It passed 5 out of 7 valuation due diligence checks.

Forestar Group's stock has dropped -10.27% in the past year. It has overperformed other stocks in the real estate development industry by 13 percentage points.

Alset (NASDAQ:AEI) is the third most undervalued real estate development stock based on WallStreetZen's Valuation Score. Alset has a valuation score of 57, which is 25 points higher than the real estate development industry average of 32. It passed 4 out of 7 valuation due diligence checks.

Alset's stock has dropped -87.15% in the past year. It has underperformed other stocks in the real estate development industry by -64 percentage points.