Detroit Expansion Will Help Opendoor Beyond Tomorrow’s Earnings

Stocks to buy

Opendoor Technologies (NASDAQ:OPEN) reports first-quarter 2022 earnings after the market’s close Thursday. Analysts expect its results will deliver healthy growth in the quarter, possibly pushing OPEN stock higher. We’ll find out soon enough.  

In the meantime, before we get to earnings, the company reported on May 3 that it was expanding into the Detroit market. The move ought to help the company’s business beyond the first quarter. That’s good news for its sagging share price, which is down nearly 50% year-to-date. 

My Investorplace colleague Vandita Jadeja believes its stock has bottomed out. Investors should be buying after earnings come out. I would suggest aggressive investors might be wise to buy before tomorrow’s results.

Here’s why.   

In addition to launching in Detroit, its 48th U.S. market where it has iBuying operations, it expanded its services in Southwest Florida and Portland, Oregon. I’m sure the company will elaborate in its Q1 2022 conference call with analysts on Thursday. 

When I last wrote about Opendoor in mid-April, I was concerned about the regulatory discipline its North Carolina business faced regarding failures to disclose pertinent information about three homes it was selling. 

However, I suggested aggressive investors might be able to get a better entry price for OPEN stock because of the North Carolina Real Estate Commission’s slap on the wrist. It did get as low as $6.52 on April 28 before rebounding slightly. 

According to Opendoor’s press release, the company will have iBuying services in six counties and 170 ZIP codes. This adds to Midwest markets such as Cleveland, Indianapolis, Minneapolis-St. Paul and Kansas City. 

Detroit’s revival continues in 2022 despite the setbacks Covid-19 dealt most American cities in 2021. Several exciting developments are happening in 2022 in Motor City that ought to add value to homes in the area. 

Opendoor’s iBuying services will ride this wave of municipal pride to the bank. It might only be one market, but America’s housing market is relatively healthy despite rising interest rates. 

I would be shocked if tomorrow’s quarterly report wasn’t upbeat. OPEN stock is a buy for aggressive investors before earnings. 

On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.

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