We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights Lennar, NVR, PulteGroup, Owens Corning and Dycom Industries
Read MoreHide Full Article
For Immediate Release
Chicago, IL – March 8, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Lennar Corp. (LEN - Free Report) , NVR, Inc. (NVR - Free Report) , PulteGroup, Inc. (PHM - Free Report) , Owens Corning (OC - Free Report) and Dycom Industries, Inc. (DY - Free Report) .
Here are highlights from Monday’s Analyst Blog:
How Is the Construction Sector Poised for the Spring?
It's been more than a year, the overall construction market, including the residential and non-residential market, has been experiencing supply-chain woes. Also, rising inflation, especially in material, labor and transportation, is a concern. The February reading of builders’ sentiment for newly-built single-family homes moved one point lower to 82, per the National Association of Home Builders/Wells Fargo Housing Market Index.
Spending on construction projects raised in January 2022, signalling positivity surrounding the industry. The January reading for the said metric improved 1.3% from December 2021 and 8.2% from a year ago.
Adding to the positive, the recent unemployment data, released by the U.S. Bureau of Labor Statistics, edged down to 3.8% in February, led by gains in leisure and hospitality, professional and business services, health care and construction.
The overall economy is recovering from COVID-19 and its variants’ impact. GDP for fourth-quarter 2021 increased at an annual rate of 7%, according to the "second" estimate released by the Bureau of Economic Analysis compared with a 2.3% rise in the third quarter.
Although the above-mentioned headwinds are ailing the housing and related industry over a year, improvement in the economy is likely to benefit homebuilders and other industrialists. The Fed’s intention to raise interest rates in 2022 to improve economic conditions post-pandemic is boosting housing sales as buyers are earger to invest in homes before the rate hike.
Apart from residential construction, non-residential construction is witnessing improvement, backed by the government's endeavor to boost investment in infrastructure construction, especially transportation (roads, ports, and bridges), water and sewerage and telecommunications. Also, the companies are well-positioned to gain from the renewable energy drive of the pro-environmental Biden administration.
Shares of Lennar Corp., NVR, Inc., PulteGroup, Inc., Owens Corning and Dycom Industries, Inc. have outperformed the Zacks Construction sector in the past year. All these companies are poised to maintain the bull run through 2022, given solid housing and economic backdrop.
Our Choices
Defying the major statistics downtrend witnessed in the housing industry, major industry bigwigs and homebuyers are optimistic and the improving economy will definitely add to the positives.
Our VGM Score is a complementary set of indicators used to better focus on the stocks that are the best fit for investors’ personal trading styles. Stocks with a Zacks Rank #1 or #2, which also has a Score of an A or a B, have the highest probability of success.
Lennar: This well-known homebuilder is benefiting from effective cost control and focus on making its homebuilding platform more efficient, leading to higher operating leverage.
Lennar’s earnings for fiscal 2022 are expected to rise 10.9% year over year to $15.82 per share. The Zacks Consensus Estimate for fiscal 2022 earnings has improved from $15.60 per share in the past 60 days. LEN's shares have moved up 1.1% in a year.
NVR: This leading homebuilder banks on a disciplined business model and focuses on maximizing liquidity as well as minimizing risks.
NVR’s shares have gained 4.7% in the past year. Earnings estimates for the current year have witnessed an upward revision in the past 30 days, indicating 39.8% year-over-year growth.
PulteGroup: This Atlanta-based homebuilder has been benefiting from a prudent land investment strategy, focus on entry-level buyers and returning more free cash flow to shareholders. PulteGroup’s annual land acquisition strategies have been resulting in improved volumes, revenues and profitability for quite some time now. The company has been reaping benefits from the successful execution of strategic initiatives to boost profitability, with a focus on entry-level homes.
PulteGroup stock has gained 4.1% in the past year. That said, the Zacks Consensus Estimate for its 2022 earnings has been upwardly revised in the past 30 days to $10.12 per share. Earnings for 2022 are expected to increase 38.6%.
Owens Corning: Headquartered in Toledo, OH, Owens Corning is benefiting from market-leading businesses, innovative products and process technologies as well as capabilities. A positive momentum in residential end markets, particularly in the United States, improved manufacturing leverage and strong cost controls will likely help the company deliver solid results.
Owens Corning has gained 6.2% in the past year. OC has seen an upward estimate revision for 2022 earnings in the past seven days to $10.61 per share. The company’s earnings for 2022 are expected to increase 14.2%.
Dycom: This specialty contracting firm has been aiding from extensive deployment of 1-gigabit wireline networks by major customers. Also, continuous contract flow from major customers will boost the company’s growth momentum.
Dycom has gained 5.8% over the past year. DY has seen an upward estimate revision for fiscal 2023 earnings over the past seven days to $3.06 per share. The company’s earnings for fiscal 2023 are expected to increase 101.3%.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top buy-and-hold tickers for the entirety of 2022?
Last year's 2021Zacks Top 10 Stocks portfolio returned gains as high as +147.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights Lennar, NVR, PulteGroup, Owens Corning and Dycom Industries
For Immediate Release
Chicago, IL – March 8, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Lennar Corp. (LEN - Free Report) , NVR, Inc. (NVR - Free Report) , PulteGroup, Inc. (PHM - Free Report) , Owens Corning (OC - Free Report) and Dycom Industries, Inc. (DY - Free Report) .
Here are highlights from Monday’s Analyst Blog:
How Is the Construction Sector Poised for the Spring?
It's been more than a year, the overall construction market, including the residential and non-residential market, has been experiencing supply-chain woes. Also, rising inflation, especially in material, labor and transportation, is a concern. The February reading of builders’ sentiment for newly-built single-family homes moved one point lower to 82, per the National Association of Home Builders/Wells Fargo Housing Market Index.
Spending on construction projects raised in January 2022, signalling positivity surrounding the industry. The January reading for the said metric improved 1.3% from December 2021 and 8.2% from a year ago.
Adding to the positive, the recent unemployment data, released by the U.S. Bureau of Labor Statistics, edged down to 3.8% in February, led by gains in leisure and hospitality, professional and business services, health care and construction.
The overall economy is recovering from COVID-19 and its variants’ impact. GDP for fourth-quarter 2021 increased at an annual rate of 7%, according to the "second" estimate released by the Bureau of Economic Analysis compared with a 2.3% rise in the third quarter.
Although the above-mentioned headwinds are ailing the housing and related industry over a year, improvement in the economy is likely to benefit homebuilders and other industrialists. The Fed’s intention to raise interest rates in 2022 to improve economic conditions post-pandemic is boosting housing sales as buyers are earger to invest in homes before the rate hike.
Apart from residential construction, non-residential construction is witnessing improvement, backed by the government's endeavor to boost investment in infrastructure construction, especially transportation (roads, ports, and bridges), water and sewerage and telecommunications. Also, the companies are well-positioned to gain from the renewable energy drive of the pro-environmental Biden administration.
Shares of Lennar Corp., NVR, Inc., PulteGroup, Inc., Owens Corning and Dycom Industries, Inc. have outperformed the Zacks Construction sector in the past year. All these companies are poised to maintain the bull run through 2022, given solid housing and economic backdrop.
Our Choices
Defying the major statistics downtrend witnessed in the housing industry, major industry bigwigs and homebuyers are optimistic and the improving economy will definitely add to the positives.
We have zeroed our findings with the help of the Zacks Stock Screener and selected the most appropriate stocks that are poised for the spring season. Notably, all these stocks carries a Zacks Rank #2 (Buy) and impressive VGM Score. You can seethe complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Our VGM Score is a complementary set of indicators used to better focus on the stocks that are the best fit for investors’ personal trading styles. Stocks with a Zacks Rank #1 or #2, which also has a Score of an A or a B, have the highest probability of success.
Lennar: This well-known homebuilder is benefiting from effective cost control and focus on making its homebuilding platform more efficient, leading to higher operating leverage.
Lennar’s earnings for fiscal 2022 are expected to rise 10.9% year over year to $15.82 per share. The Zacks Consensus Estimate for fiscal 2022 earnings has improved from $15.60 per share in the past 60 days. LEN's shares have moved up 1.1% in a year.
NVR: This leading homebuilder banks on a disciplined business model and focuses on maximizing liquidity as well as minimizing risks.
NVR’s shares have gained 4.7% in the past year. Earnings estimates for the current year have witnessed an upward revision in the past 30 days, indicating 39.8% year-over-year growth.
PulteGroup: This Atlanta-based homebuilder has been benefiting from a prudent land investment strategy, focus on entry-level buyers and returning more free cash flow to shareholders. PulteGroup’s annual land acquisition strategies have been resulting in improved volumes, revenues and profitability for quite some time now. The company has been reaping benefits from the successful execution of strategic initiatives to boost profitability, with a focus on entry-level homes.
PulteGroup stock has gained 4.1% in the past year. That said, the Zacks Consensus Estimate for its 2022 earnings has been upwardly revised in the past 30 days to $10.12 per share. Earnings for 2022 are expected to increase 38.6%.
Owens Corning: Headquartered in Toledo, OH, Owens Corning is benefiting from market-leading businesses, innovative products and process technologies as well as capabilities. A positive momentum in residential end markets, particularly in the United States, improved manufacturing leverage and strong cost controls will likely help the company deliver solid results.
Owens Corning has gained 6.2% in the past year. OC has seen an upward estimate revision for 2022 earnings in the past seven days to $10.61 per share. The company’s earnings for 2022 are expected to increase 14.2%.
Dycom: This specialty contracting firm has been aiding from extensive deployment of 1-gigabit wireline networks by major customers. Also, continuous contract flow from major customers will boost the company’s growth momentum.
Dycom has gained 5.8% over the past year. DY has seen an upward estimate revision for fiscal 2023 earnings over the past seven days to $3.06 per share. The company’s earnings for fiscal 2023 are expected to increase 101.3%.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top buy-and-hold tickers for the entirety of 2022?
Last year's 2021Zacks Top 10 Stocks portfolio returned gains as high as +147.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys
Access Zacks Top 10 Stocks for 2022 today >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.