Recently, U.S. Department of Commerce mentioned that U.S. construction spending recorded its largest gain in five months since May with 1.1% rise in October, exceeding the economists’ expectations of 0.6%. Economists also raised their fourth-quarter growth estimates with a range between 1.7% and 3%.
Today we have shortlisted 12 U.S. building materials & fixtures stocks that would benefit from construction spending expectations, as they are expected to report strong sales growth as well as superior operating profits and net profit margins for fiscal year 2014. During the past one month, majority of the stocks have registered price gains with daily average trading volumes in excess of 100,000.
|
Company Name |
Ticker |
Exchange |
Market Cap |
Last Price |
Average Volume |
Price Change (1-Month) |
Sales Growth 2014 (E) |
Operating Margin 2014(E) |
Net Profit Margin 2014(E) |
|
Eagle Materials Inc |
EXP |
NYSE |
4,224.6 |
84.05 |
986,064 |
2.1% |
21.4% |
23.4% |
16.6% |
|
Trex Co Inc |
TREX |
NYSE |
1,337.5 |
41.79 |
314,719 |
-0.9% |
13.2% |
17.1% |
10.5% |
|
PGT Inc |
PGTI |
NASDAQ |
458.6 |
9.63 |
355,677 |
3.0% |
27.3% |
13.3% |
7.3% |
|
Simpson Manufacturing Co Inc |
SSD |
NYSE |
1,663.3 |
33.98 |
144,849 |
3.2% |
7.0% |
13.1% |
8.3% |
|
Continental Building Products Inc |
CBPX |
NYSE |
784.4 |
17.80 |
383,044 |
4.9% |
6.3% |
12.1% |
5.0% |
|
Headwaters Inc |
HW |
NYSE |
1,067.4 |
14.52 |
504,698 |
14.8% |
10.8% |
11.2% |
4.8% |
|
USG Corp |
USG |
NYSE |
4,165.4 |
28.78 |
1,112,508 |
8.9% |
4.7% |
8.8% |
4.8% |
|
LSB Industries Inc |
LXU |
NYSE |
722.0 |
31.93 |
160,896 |
-10.8% |
7.0% |
7.6% |
4.0% |
|
Apogee Enterprises Inc |
APOG |
NASDAQ |
1,355.2 |
46.79 |
171,941 |
7.6% |
20.2% |
6.9% |
5.1% |
|
Griffon Corp |
GFF |
NYSE |
664.5 |
12.62 |
135,414 |
2.4% |
4.0% |
4.9% |
1.9% |
|
Boise Cascade Co |
BCC |
NYSE |
1,472.0 |
37.35 |
475,883 |
1.4% |
9.3% |
4.3% |
2.4% |
|
Builders FirstSource Inc |
BLDR |
NASDAQ |
654.6 |
6.67 |
263,500 |
15.8% |
8.7% |
3.3% |
1.2% |
Source: Bloomberg
Company Description
Eagle Materials Inc (NYSE: EXP)
Eagle Materials Inc. manufactures and distributes cement, gypsum wallboard, recycled paperboard, and concrete and aggregates.The company’s products are used in the construction of homes, commercial and industrial buildings, and governmental buildings across the United States.
Trex Co Inc (NYSE: TREX)
Trex Company, Inc. manufactures non-wood decking alternative products.The company markets its products under the Trex brand name.Trex’s products are made from waste wood fibers and reclaimed polyethylene and are used for residential and commercial decking, and marketed under the Trex brand name and Trex Wood-Polymer trademark.
PGT Inc (NASDAQ: PGTI)
PGT, Inc. manufactures and supplies residential impact-resistant windows and doors.
Simpson Manufacturing Co Inc (NYSE: SSD)
Simpson Manufacturing Co., Inc., through its Simpson Strong-Tie Company Inc. subsidiary, designs, engineers, and manufactures wood-to-wood, wood-to-concrete, and wood-to-masonry connectors and shear walls.The company’s other subsidiary, Simpson Dura-Vent Company, Inc., designs, engineers, and manufactures venting systems for gas and woodburning appliances.
Continental Building Products Inc (NYSE: CBPX)
Continental Building Products, Inc. manufactures gypsum wall board, joint compound and complementary finishing products. The company serves the residential, commercial and repair and remodel construction markets primarily in the eastern United States and eastern Canada.
Headwaters Inc (NYSE: HW)
Headwaters Incorporated is a manufacturer of building products for new residential, residential remodeling, and commercial construction. Headwaters’ portfolio of light building products includes architectural stone; resin-based exterior siding accessories, such as shutters, mounting blocks and gable vents; concrete block and brick; and other building products.
USG Corp (NYSE: USG)
USG Corporation, through its subsidiaries, manufactures and distributes building materials.The company produces a wide range of products for use in new residential, new non-residential, and repair and remodel construction, as well as products used in certain industrial processes.USG’s two core businesses include North American Gypsum and Worldwide Ceilings.
LSB Industries Inc (NYSE: LXU)
LSB Industries, Inc., through its subsidiaries, manufactures and sells chemical products for the mining, agricultural, and industrial markets.The company also manufactures and sells commercial and residential climate control products, as well as provides specialized engineering services and other activities.
Apogee Enterprises Inc (NASDAQ: APOG)
Apogee Enterprises, Inc. designs and develops value-added glass products, services, and systems.The company’s products include architectural glass, glass coatings for the electronics markets, and replacement auto glass.The company also provides building glass installation and replacement services. Apogee Enterprises operates around the world.
Griffon Corp (NYSE: GFF)
Griffon Corporation manufactures building products, specialty plastic films, and electronic information and communication systems.The company’s products include garage doors, materials for disposable diapers, disposable health care products, sensor systems, and information and command and control systems. Griffon sells its products in the United States.
Boise Cascade Co (NYSE: BCC)
Boise Cascade Company manufactures and markets wood products. The company offers lumber, plywood, engineered wood, and particleboard, as well as adhesive sealants, concrete, fasteners, flashing, vents, framing accessories, gypsum, insulating, locks, and roofing products.
Builders FirstSource Inc (NASDAQ: BLDR)
Builders FirstSource, Inc. manufactures and distributes building products to professional homebuilders.
