iShares U.S. Home Construction ETF (ITB)
Entry: Unlock
Price target: 115.00-116.00
Second PT: Unlock
A good name to start small and add to using the "DCA" strategy.
Homebuilder stocks have lagged behind the broader market rally as investors wait for signs of a housing rebound. That revival may be approaching, with mortgage rates now at their lowest level in over a year and expected to fall further in the coming months as the Federal Reserve continues its rate cutting cycle. Companies like D.R. Horton, Lennar, Toll Brothers, and other leading builders are trading at historically low valuations, making them some of the most attractive opportunities in a market filled with stretched price to earnings ratios. For example, all three stocks are trading at just 10–12 times earnings, well below the S&P 500’s current average of around 30x. While valuation multiples aren’t the only factor to consider when investing, such a wide discount highlights the relative value and upside potential in the homebuilding sector.
We do recognize that revenue growth has been flat or slightly negative across the industry this year, but there are clear signs of a potential turnaround. The latest new home sales data showed a 20% month over month surge and a 15% year over year increase, indicating that buyers are returning to the market as affordability improves and builders step up incentives. Inventory levels have also tightened to roughly 7.4 months of supply, down from nearly 9 months earlier in the year, a sign of strengthening demand.
If rates continue to decline, we could see a renewed housing cycle take shape, with pent-up demand from first time buyers and move up buyers flowing back into the market. With the ITB ETF offering diversified exposure to major U.S. homebuilders at attractive valuations, this sector could be poised for outsized gains as the housing market transitions from stagnation to recovery.
Note, we’re already holding a few individual homebuilder plays in Hyper Stocks Pro, this is just an alternative to those looking to capitalize on the industry as a whole without taking on the risk of holding a single stock.
FedEx (FDX)
Entry: Unlock
Price target: 270.00-272.00
Entry: Unlock
A good name to start small and add to using the "DCA" strategy.
FedEx is a household name in global shipping and logistics, but its stock has been beaten down over the past twelve months due to macroeconomic pressures and the company’s earlier decision to suspend forward guidance. However, in its most recent earnings report, FedEx reinstated its full year outlook for both FY2025 and FY2026, citing 3% year over year revenue growth for 2025 and 4%–6% growth for 2026. Management also reaffirmed its cost reduction and investment targets, aiming for $1 billion in structural savings and about $4.5 billion in network optimization investments, a sign that leadership is taking concrete measures to improve efficiency and profitability.
Looking at the last quarterly report, FedEx beat both revenue and profit estimates, but the stock didn’t see a major rally in response. That’s likely because investors are still digesting the results while weighing broader macroeconomic headwinds, including tariffs and slowing global trade. Still, investors with a longer time horizon can recognize that FedEx currently trades at an attractive valuation. In a market where many equities are trading at inflated multiples, FedEx, a fundamentally strong, cash generative business, stands out as a rare undervalued blue chip opportunity in the logistics sector.
FedEx generates roughly $90 billion in annual revenue and posted a net margin of about 4.6% last year. With cost cutting measures on track, the company is positioned to expand margins, making its already modest 13.9× forward P/E even more compelling. The balance sheet remains healthy, with $88.4 billion in assets versus $60.6 billion in liabilities, leaving $27.8 billion in shareholder equity. Free cash flow, a key metric for long term investors, surged from $500 million a year ago to $3.65 billion, highlighting strong capital discipline and operational improvement. Altogether, these figures reinforce FedEx as a solid long term value play supported by competent management and improving financial efficiency.
Opendoor Technologies (OPEN)
Entry: Unlock
Stop loss: 15% (High risk)
Price target: 10.00-11.00
Entry: Unlock
We don’t often trade “meme” stocks in Hyper Stocks, but OpenDoor is a compelling case because there is actually some financial backing to the company. While most meme stocks don’t have much fundamental strength and usually run off popularity and retail buying, OpenDoor actually has respectable revenue that may be on the verge of growth again as interest rates fall and the housing market once again turns in their favor.
In case you don’t know, Opendoor is involved in the real estate market, engaging in buying, selling, and trading residential properties online. The company shined bright in 2020-2021 during the housing boom, earning $8.02B and $15.57 billion in revenue those years, respectively. Since then, revenue has slumped significantly and so has the stock, but as rates fall again and the housing market picks back up, Opendoor could be nearing a recovery period. The latest new home sales data showed a 20% month over month surge and a 15% year over year increase, indicating that buyers are returning to the market as affordability improves and builders step up incentives. Moreover, YoY used home sales grew at a rate of 4.1%, modest, but still moving in the right direction.
With renewed interest in the stock and a possibility of the housing market’s recovery, Opendoor could begin seeing more active buyers, especially with earnings coming up in a couple weeks. $OPEN is already up more than 1000% from its lows in the past three months, but it has a chance of shooting higher if the earnings call goes well and they provide optimistic outlook.
Note, although fundamentals are attractive, the “meme” title stamped on this stock makes it high risk high reward so investors should keep that in mind when positioning into a name like this.
Stock Name - Unlock
Entry: 23.50-24.00
Price target: 30.00-31.00
Second PT: 33.00-34.00
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Stock Name - Unlock
Entry: 24.50-25.00
Price target: 28.00-28.50
Second PT: 30.00+
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Stock Name - Unlock
Entry: 15.50-16.00 (Start small and use DCA)
Price target: 17.30-17.50
Second PT: TBD
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Stock Name - Unlock
Entry: 52.00-53.00
Price target: 62.00-63.00
Second PT: 68.00-71.00
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The stocks posted above are the preliminary stocks and set ups we’ll be watching this week. All price points are subject to change based on market performance and sector health. Please do your own research and analysis on these companies/charts before taking on any set ups. This page and our services are for educational purposes only. This is not financial advice. Please consult with a professional for financial advice. Trade at your own risk and as always, good luck!
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of capital. Always do your own research or consult with a licensed financial advisor before making investment decisions.