After a string of third-quarter earnings releases by companies in the construction sector, we are gearing up for the next batch of reports this week. With the earnings season picking up pace, 80.1% companies in the construction space have reported their quarterly results. According to our latest Earnings Outlook, 33.3% have surpassed earnings estimates while 11.1% beat revenue expectations.
Total earnings for these construction companies increased 6.4% on 6.3% higher revenues. The sector is likely to register a 5.2% increase in earnings on 7% revenue growth.
Positives like a healthier economy, improving employment levels, low interest rates, positive consumer confidence and a tight supply situation raise optimism about the sector’s performance. Further, a strong home remodeling market along with solid job data and rising consumer confidence are doing the trick for these stocks.
So far, some of the leading companies in the construction sector have reported their third-quarter numbers. Masco Corporation (MAS - Free Report) reported third-quarter results wherein both earnings and revenues missed the Zacks Consensus Estimate. PulteGroup Inc.’s (PHM - Free Report) third-quarter 2016 earnings were in line with the Zacks Consensus Estimate while revenues missed the same. KB Home (KBH - Free Report) reported third-quarter numbers wherein earnings surpassed analysts’ expectations by 7.7% and also increased 83% year over year.
Let’s take a look at what’s in store for three construction stocks which are scheduled to release their third-quarter numbers on Nov 7.
Trex Co. Inc. (TREX - Free Report) , a manufacturer of wood-alternative decking and railing, has an Earnings ESP of 0.00% and a Zacks Rank #2 (Buy).
As per our model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) to beat earnings.
Thus, our proven model does not conclusively show a beat for Trex this quarter.
Last quarter, the company posted a positive earnings surprise of 9.72%. The company reported positive earnings surprises in three of the past four quarters, with an average beat of 8.11%.
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
For the third quarter, the Zacks Consensus Estimate for earnings is pegged at 41 cents per share, reflecting an increase of 58.5% year over year, while the consensus for revenues is at $105.1 million, implying 11.7% year-over-year growth.
Ply Gem Holdings, Inc manufactures and sells exterior building products primarily in the U.S. and Canada. The company has an Earnings ESP of 0.00% and a Zacks Rank #3 which makes it difficult to predict a beat for Ply Gem this quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the previous quarter, the company posted a positive earnings surprise of 14.81%. Ply Gem reported positive earnings surprises in all of the past four quarters, with an average beat of 71.25%.
For the third quarter, the Zacks Consensus Estimate for earnings is pegged at 68 cents a share, reflecting an increase of 13.8% year over year, while the consensus for revenues is at $548.7 million, implying 3.4% year-over-year growth.
Continental Building Products, Inc. is a leading manufacturer of wallboard and gypsum-based products.
The company has an Earnings ESP of 0.00% and a Zacks Rank #3 which makes it difficult to predict a beat for Continental Building this quarter.
In the previous quarter, the company posted a positive earnings surprise of 6.9%. Continental Building reported positive earnings surprises in three of the past four quarters, with an average positive surprise of 19.43%.
For the third quarter, the Zacks Consensus Estimate for earnings is pegged at 29 cents a share, reflecting an increase of 16% year over year, while the consensus for revenues is at $109 million, implying 0.8% year-over-year rise.
Zacks' Best Investment Ideas for Long-Term Profit
Today you can gain access to long-term trades with double and triple-digit profit potential rarely available to the public. Starting now, you can look inside our stocks under $10, home run and value stock portfolios, plus more. Want a peek at this private information? Click here >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
After a string of third-quarter earnings releases by companies in the construction sector, we are gearing up for the next batch of reports this week. With the earnings season picking up pace, 80.1% companies in the construction space have reported their quarterly results. According to our latest Earnings Outlook, 33.3% have surpassed earnings estimates while 11.1% beat revenue expectations.
Total earnings for these construction companies increased 6.4% on 6.3% higher revenues. The sector is likely to register a 5.2% increase in earnings on 7% revenue growth.
Positives like a healthier economy, improving employment levels, low interest rates, positive consumer confidence and a tight supply situation raise optimism about the sector’s performance. Further, a strong home remodeling market along with solid job data and rising consumer confidence are doing the trick for these stocks.
So far, some of the leading companies in the construction sector have reported their third-quarter numbers. Masco Corporation (MAS - Free Report) reported third-quarter results wherein both earnings and revenues missed the Zacks Consensus Estimate. PulteGroup Inc.’s (PHM - Free Report) third-quarter 2016 earnings were in line with the Zacks Consensus Estimate while revenues missed the same. KB Home (KBH - Free Report) reported third-quarter numbers wherein earnings surpassed analysts’ expectations by 7.7% and also increased 83% year over year.
Let’s take a look at what’s in store for three construction stocks which are scheduled to release their third-quarter numbers on Nov 7.
Trex Co. Inc. (TREX - Free Report) , a manufacturer of wood-alternative decking and railing, has an Earnings ESP of 0.00% and a Zacks Rank #2 (Buy).
As per our model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) to beat earnings.
Thus, our proven model does not conclusively show a beat for Trex this quarter.
Last quarter, the company posted a positive earnings surprise of 9.72%. The company reported positive earnings surprises in three of the past four quarters, with an average beat of 8.11%.
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
For the third quarter, the Zacks Consensus Estimate for earnings is pegged at 41 cents per share, reflecting an increase of 58.5% year over year, while the consensus for revenues is at $105.1 million, implying 11.7% year-over-year growth.
Ply Gem Holdings, Inc manufactures and sells exterior building products primarily in the U.S. and Canada. The company has an Earnings ESP of 0.00% and a Zacks Rank #3 which makes it difficult to predict a beat for Ply Gem this quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the previous quarter, the company posted a positive earnings surprise of 14.81%. Ply Gem reported positive earnings surprises in all of the past four quarters, with an average beat of 71.25%.
For the third quarter, the Zacks Consensus Estimate for earnings is pegged at 68 cents a share, reflecting an increase of 13.8% year over year, while the consensus for revenues is at $548.7 million, implying 3.4% year-over-year growth.
Continental Building Products, Inc. is a leading manufacturer of wallboard and gypsum-based products.
The company has an Earnings ESP of 0.00% and a Zacks Rank #3 which makes it difficult to predict a beat for Continental Building this quarter.
In the previous quarter, the company posted a positive earnings surprise of 6.9%. Continental Building reported positive earnings surprises in three of the past four quarters, with an average positive surprise of 19.43%.
For the third quarter, the Zacks Consensus Estimate for earnings is pegged at 29 cents a share, reflecting an increase of 16% year over year, while the consensus for revenues is at $109 million, implying 0.8% year-over-year rise.
Zacks' Best Investment Ideas for Long-Term Profit
Today you can gain access to long-term trades with double and triple-digit profit potential rarely available to the public. Starting now, you can look inside our stocks under $10, home run and value stock portfolios, plus more. Want a peek at this private information? Click here >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on MAS - FREE
Get the latest research report on PHM - FREE
Get the latest research report on KBH - FREE
Get the latest research report on TREX - FREE