Here's a look at shares of CalAtlantic Homes (NYSE:CAA), which have slumped since the company announced a decline in new orders over the summer. Barron's reports:

A pickup in single-family home sales bodes well for a California-based builder with land in some of the fastest-growing parts of the country. CalAtlantic Group, the nation’s fourth-largest builder, has one of the cheapest stocks in the sector, and could see a big gain from the housing rebound. Some investors expect the shares, which fetched $34.47 late last week, to rise 25% in the next year.

CalAtlantic (ticker: CAA) is an anomaly: a new entity with a seasoned pedigree. The company, based in Irvine, Calif., was formed last year from the merger of Ryland Group, an entry-level builder, and Standard Pacific, which catered more to the move-up and luxury segments. Both were based in California, but built homes throughout the country. The combined company now has 67,741 home sites in 17 states.

CalAtlantic shares have trailed the market and peers this year, losing 9.1% even as the SPDR S&P Homebuilders exchange-traded fund (XHB) has been flat. The stock fell sharply in July after the company said second-quarter home orders declined 1% instead of rising 8%, as expected. Orders were particularly weak in the Southwest, a core region for the company. CalAtlantic pointed to various factors, from a labor shortage in some regions to price increases that might have scared off some buyers.

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