Even After An Impressive Rally, Green Brick Partners Is Still Cheap

Summary

• Green Brick Partners continues to trade for less than 5x earnings, despite impressive growth and resiliency in a tough market.
• Shares could face stagnation in the near term as 2023 presents headwinds for homebuilders, but expansion into Austin, Texas gives me confidence that the company can continue to grow long term.
• With a substantial support level around $20 per share, the technical picture looks attractive and valuation metrics indicate that even after a nice rally, the stock is still quite cheap.
• Mortgage demand is starting to perk up in the new year, but interest rates and inflation are major issues especially for millennial homebuyers.
• In this article, I will also touch on past articles and offer insight into when buying Green Brick Partners stock may be most advantageous for investors.

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Investment Thesis

Green Brick Partners (NYSE:GRBK) was one of the first new stocks I added to my portfolio in 2022, after rising interest rates spooked the market and caused homebuilders to crash. Along with many other companies, mortgage

Analyst’s Disclosure:I/we have a beneficial long position in the shares of GRBK either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.