This Homebuilder Stock Is Poised to Ride Out a Recession
When people think about real estate stocks, many turn their attention to real estate investment trusts (REITs). Although you can certainly do well with REITs and the regular dividends they offer, other types of real estate companies are also crushing it now, despite the looming threat of a recession.
Homebuilder LGI Homes (NASDAQ: LGIH) is one of those companies whose business is doing well despite all odds. Despite being among the smaller publicly traded players in the homebuilding arena, this mid-cap has spent the last 20 years making careful and precise decisions that allowed it to ride out the real estate crash of 2008, and have it poised to do the same with 2022's turbulent real estate market.
Although LGI Homes builds homes in major metro areas, it doesn't construct the kind that a lot of its peers seem to be focused on today. LGI Homes, instead, looks for opportunities on the edges of the market. In doing so, it has managed to carve out a significant niche for itself with both first-time homebuyers and those looking to move into age-limited communities.
Source Fool.com
