Legacy Housing Corp

Legacy Housing reported a banner second quarter, with revenue rising 32% year over year to $66.3 million and net income soaring almost 59% to $23.5 million. Earnings per share of $0.99 was 62% higher than a year ago, and the stock is up about 45% year-to-date. The company manufactures homes in factories rather than building on-site, and also makes tiny homes. The author argues manufactured housing has a huge future due to a national shortage of 4.7 million homes, lower average costs of about $120,000, and recent passage of the ROAD to Housing Act. Legacy's market capitalization of about $690 million is dwarfed by major homebuilders like PulteGroup, D.R. Horton, and Lennar.

Zacks Investment Research added five stocks to its Zacks Rank #1 (Strong Buy) List today. Powell Industries saw its current-year earnings consensus estimate rise 39.1% over the last 60 days. Delek US Holdings' estimate increased 44%, Alliance Laundry Holdings' rose 10.3%, Cenovus Energy's climbed 38.2%, and Legacy Housing Corporation's estimate grew 11.5% over the same period.