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3 Highly Ranked Construction Stocks Benefitting from Top Business Industries
There continues to be an abundance of opportunity in the Zacks Construction sector which currently boasts 15 stocks on the coveted Zacks Rank #1 (Strong Buy) list.
Benefiting from strong business industries, here are three of these highly ranked construction sector stocks that were added to the strong buy list over the last few weeks.
Comfort Systems USA
Comfort Systems USA belongs to the Zacks Building Products-Air Conditioner and Heating Industry which is currently in the top 2% of over 250 Zacks industries.
Comfort Systems stock has soared +54% year to date and is now up +125% over the last year as a national provider of comprehensive heating, ventilation, and air conditioning services.
With an “A” Zacks Style Scores grade for Growth, Comfort Systems' annual earnings are forecasted to climb 30% in FY24 to $11.42 per share versus $8.74 a share last year. Plus, FY25 EPS is expected to jump another 13%. Furthermore, Comfort Systems stock trades at 27.5X forward earnings which is a slight discount to its industry average of 33.8X with some of the other notable names in the space being Lennox International and Watsco.
CRH
The Zacks Building Products-Miscellaneous Industry is in the top 3% of all Zacks industries and has had many outperformers including CRH plc, a manufacturer of cement, concrete products, aggregates, roofing, insulation, and other building materials.
CRH shares are up +22% YTD and have risen +68% over the last year but still trade at a very reasonable 15.8X forward earnings multiple. This is nicely beneath the industry average of 18.3X and the S&P 500’s 21.8X. Even better, CRH’s annual earnings are expected to jump 15% this year and projected to rise another 8% in FY25 to $5.79 per share.
Armstrong World Industries
Also belonging to the Zacks Building Products-Miscellaneous Industry, Armstrong World Industries has seen its stock pop +24% in 2024. More impressive, as a leading global provider of ceiling systems used in construction and renovation, Armstrong World Industries' stock has climbed +78% in the last year.
With that being said, AWI still trades at a 20.9X forward earnings multiple which is near the industry average and below the benchmark. More importantly, annual earnings are projected to rise 8% in both FY24 and FY25.
Bottom Line
Notably, earnings estimate revisions have gone up for these top construction sector stocks which is reason to believe their strong price performances will continue. This is especially true when considering their reasonable P/E valuations which makes now a good time to buy.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
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.
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Zacks Investment Ideas feature highlights: Comfort Systems, CRH, Lennox, Watsco and Armstrong World
For Immediate Release
Chicago, IL – April 4, 2024 – Today, Zacks Investment Ideas feature highlights Comfort Systems USA (FIX - Free Report) , CRH (CRH - Free Report) , Lennox International (LII - Free Report) , Watsco (WSO - Free Report) and Armstrong World Industries (AWI - Free Report) .
3 Highly Ranked Construction Stocks Benefitting from Top Business Industries
There continues to be an abundance of opportunity in the Zacks Construction sector which currently boasts 15 stocks on the coveted Zacks Rank #1 (Strong Buy) list.
Benefiting from strong business industries, here are three of these highly ranked construction sector stocks that were added to the strong buy list over the last few weeks.
Comfort Systems USA
Comfort Systems USA belongs to the Zacks Building Products-Air Conditioner and Heating Industry which is currently in the top 2% of over 250 Zacks industries.
Comfort Systems stock has soared +54% year to date and is now up +125% over the last year as a national provider of comprehensive heating, ventilation, and air conditioning services.
With an “A” Zacks Style Scores grade for Growth, Comfort Systems' annual earnings are forecasted to climb 30% in FY24 to $11.42 per share versus $8.74 a share last year. Plus, FY25 EPS is expected to jump another 13%. Furthermore, Comfort Systems stock trades at 27.5X forward earnings which is a slight discount to its industry average of 33.8X with some of the other notable names in the space being Lennox International and Watsco.
CRH
The Zacks Building Products-Miscellaneous Industry is in the top 3% of all Zacks industries and has had many outperformers including CRH plc, a manufacturer of cement, concrete products, aggregates, roofing, insulation, and other building materials.
CRH shares are up +22% YTD and have risen +68% over the last year but still trade at a very reasonable 15.8X forward earnings multiple. This is nicely beneath the industry average of 18.3X and the S&P 500’s 21.8X. Even better, CRH’s annual earnings are expected to jump 15% this year and projected to rise another 8% in FY25 to $5.79 per share.
Armstrong World Industries
Also belonging to the Zacks Building Products-Miscellaneous Industry, Armstrong World Industries has seen its stock pop +24% in 2024. More impressive, as a leading global provider of ceiling systems used in construction and renovation, Armstrong World Industries' stock has climbed +78% in the last year.
With that being said, AWI still trades at a 20.9X forward earnings multiple which is near the industry average and below the benchmark. More importantly, annual earnings are projected to rise 8% in both FY24 and FY25.
Bottom Line
Notably, earnings estimate revisions have gone up for these top construction sector stocks which is reason to believe their strong price performances will continue. This is especially true when considering their reasonable P/E valuations which makes now a good time to buy.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
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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.