TRI Pointe Group Inc. (NYSE: TPH) is an American construction company that focuses on residential construction. It’s also involved in the sale and development of land.
The company primarily designs and builds single-family homes and condominiums through its portfolio of six regional housing brands.
Its largest regional brands include Maracay Homes, which operates in Arizona, and TRI Pointe and Pardee Homes, which operate in California, Nevada, and Colorado.
From a geographic perspective, California is TRI Pointe's largest source of revenue, followed by Arizona and Nevada. The company also operates in Texas, Oregon, and Virginia.
TRI Pointe completes approximately 4,000 homes annually with an average selling price around $500,000.
I’m calling this the “fastest growing stock” is because it has the highest year-over-year earnings per share (EPS) growth of any publicly traded company on the market today.
Rising earnings show a growing business that’s generating more money it can then use to reinvest and return to shareholders in the form of dividends or share buybacks…
And TRI Pointe Group grew its EPS by a massive 47,900% – from 0.0005 in Q1 2019 to 0.24 in Q1 2020.
The company’s $1.7 billion market cap means there’s plenty of room to grow – especially since new home construction hasn’t taken a dive due to COVID-19.
In fact, sales of newly built home jumped 16.6% in May, versus the 1.9% consensus analyst estimate.
TPH has seen considerable stock growth from the lows it made in mid-March. It’s already up 120% from $5.90 to $13 per share today.
Look for the momentum to carry through the end of the year and into 2021. I could reasonably see shares jumping to $25-$28 per share by then. That represents an 92% to 118% increase from current levels.
EDITOR'S NOTE: This is the 2nd issue of a 3-part series looking at small-cap stocks. In this edition, we looked at the best growth stock. Click here for part 1 – the best value small cap stock. In part 3, we'll look at the small-cap with the most momentum today. This stock is up 1,633% YTD and could jump another 5-10x from here...