Tri Pointe Homes, Inc. (TPH Quick QuoteTPH - Free Report) expands its premium lifestyle builder presence, unveiling a new division in Utah. This move solidifies its position in the greater Salt Lake City region's growing housing market, offering promising growth and development opportunities.

According to U.S. Census Bureau data, Utah was one of the nation's fastest-growing regions from 2010-2020. The state boasts one of the nation's lowest unemployment rates, according to the U.S. Bureau of Labor Statistics. TPH’s strategic expansion capitalizes on the state's sustained population and job growth, which significantly fuels housing demand.

Utah's robust housing market derives strength from its diverse economy, offering a promising path for long-term growth. Ken Krivanec, who has led TPH's Washington division for 12 years, will take on a dual president role. The state's thriving job market, fueled by its diverse industries such as tech, life sciences, aerospace, financial services, and energy/natural resources, aligns with the increasing housing demand.

Before expanding into the region, TPH assessed the Utah market through extensive market research. As a growth-focused company, TPH prioritizes understanding each market's fundamentals and how its customer-centric, premium lifestyle builder model can meet demand. The company remains optimistic regarding this expansion and anticipates it to be a successful strategic move.

Tri Pointe Homes observes a significant housing shortage nationwide, exacerbated by existing homeowners holding onto low-interest rate mortgages. Also, reduced housing starts by new builders have worsened this shortage. TPH views this as an opportunity to apply its "Best of Big and Small" approach to expanding, capitalizing on the supply-demand imbalance in the market.

The company emphasizes its ‘Best of Big and Small’ approach. In this strategic approach, the regional divisions are led by local experts who have the authority to make decisions while benefiting from the financial support and resources of one of the nation's largest public homebuilding operations. This approach is a key factor contributing to TPH's success in diverse markets nationwide.
 

Image Source: Zacks Investment Research

Shares of TPH have increased 83.2% in the past year compared with the Zacks Building Products - Home Builders industry’s 67.3% rise. The company has benefited from a strong new housing construction market, cost control efforts and reduced cycle time. Also, focus on expansion bodes well.

Zacks Rank & Key Picks

Tri Pointe currently sports a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Zacks Construction sector are:

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The Zacks Consensus Estimate for BCC’s 2023 sales and earnings per share (EPS) indicates a decline of 20.1% and 45.5%, respectively, from the year-ago period’s levels.

EMCOR Group, Inc. (EME Quick QuoteEME - Free Report) flaunts a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 17.2%, on average. Shares of EME have risen 83.7% in the past year.

The Zacks Consensus Estimate for EME’s 2023 sales and EPS suggests growth of 11.7% and 36.2%, respectively, from the year-ago period’s levels.

TopBuild Corp. (BLD Quick QuoteBLD - Free Report) flaunts a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 14.1% on average. Shares of BLD have surged 59.1% in the past year.

The Zacks Consensus Estimate for BLD’s 2023 sales and EPS indicates gains of 3.3% and 8.4%, respectively, from the year-ago period’s levels.