Hurricane Irma, one of the strongest storms to hit the United States, has wreaked havoc leaving widespread damage in its wake with many being rendered homeless. While it may be too soon to get an accurate idea about the damage caused by Hurricane Irma, building products like insulation, roofing, tiles and wallboard will see an increase in demand as well as pricing in the coming quarters as residents in Florida as well as Texas, which was hit by Hurricane Harvey, work toward rebuilding.
Here is a look at four building product stocks that will remain in focus as cleanup and rebuilding efforts pick pace.
Owens Corning (OC - Free Report) : Toledo, OH-based Owens Corning develops, manufactures, and markets insulation, roofing, and fiberglass composites. The company has a strong earnings track record having surpassed expectations in each of the last four quarters with an average surprise of 20.17%. Owens Corning should benefit from the recently closed Pittsburgh Corning acquisition that should accelerate growth by expanding the company’s commercial and industrial product offering and increasing its footprint in Europe and Asia for the Insulation business.
Owens Corning is a Zacks Rank #1 (Strong Buy) stock. The company also has a VGM Score of A - our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or #2 offer the best upside potential. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Owens Corning have gained 44.9% year to date, significantly outperforming the industry’s 8.1% rally.
The Home Depot, Inc. (HD - Free Report) : Atlanta, GA-based The Home Depot is the world's largest home improvement specialty retailer, with a presence in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. The Zacks Rank #2 (Buy) stock has a VGM Score of A. Shares of The Home Depot are up 19.4% year to date, outperforming the industry’s 14.5% rally.
The stock has surpassed earnings expectations in each of the last four quarters and has seen the Zacks Consensus Estimate for current-year earnings being revised 0.9% upward over the last 30 days.
Lumber Liquidators (LL - Free Report) : Toano, VA-based Lumber Liquidators is the largest specialty retailer of hardwood flooring in North America with 385 locations. The company provides an extensive range of exotic and domestic hardwood species, engineered hardwoods, laminates, bamboo and cork at low prices designed to cater to a wide customer base. Proprietary brands include the flagship Bellawood brand.
The Zacks Rank #2 stock has gained 142.9% year to date, substantially outperforming the 14.5% rally of the industry it belongs to.
TopBuild Corp. (BLD - Free Report) : Daytona Beach, FL-based TopBuild is the leading purchaser, installer and distributor of insulation products to the U.S. construction industry. The stock has surpassed earnings expectations in each of the last four quarters and has seen the Zacks Consensus Estimate for current-year earnings being revised 1.5% upward over the last 7 days.
The Zacks Rank #2 stock has gained 63.8% year to date, substantially outperforming the 8.1% rally of the industry it belongs to.
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