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The Zacks Analyst Blog Highlights: PulteGroup, PGT Innovations, D.R. Horton, Comfort Systems USA and Armstrong Flooring
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For Immediate Release
Chicago, IL – September 21, 2018 – 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 PulteGroup Inc. (PHM - Free Report) , PGT Innovations, Inc. , D.R. Horton, Inc. (DHI - Free Report) , Comfort Systems USA, Inc. (FIX - Free Report) and Armstrong Flooring, Inc. .
Housing Starts Hit 3-Month High: 5 Top-Ranked Picks
Housing starts climbed to their highest level in three months in August. Powering the gains was a significant jump in multifamily housing starts. In comparison, single-family homebuilding accrued modest gains. The decline in building permits was a cause for concern, however, since the metric is a reliable indicator of future homebuilding activity.
At the same time, a robust job market, wage gains and the Trump administration’s tax cuts have helped to bolster housing demand. This is the primary factor supporting the housing sector in the face of multiple headwinds, including tariffs and rising mortgage rates.
Additionally, a decline in lumber prices has helped a crucial gauge of homebuilder confidence remain unchanged in September. Adding stocks gaining from strong housing demand looks like a smart option at this time.
Multifamily Starts Boost Headline Number
In August, privately owned housing starts increased by 9.2% from July’s pace to a seasonally adjusted annual level of 1.282 million units. This represents a year-over-year increase of 9.4%. It is also significantly higher than the estimated level of 1.232 million units. Additionally, the figure for July was revised upward to 1.174 million units.
Single-family housing starts increased modestly, by 1.9% to a pace of 876,000 units in August. The major factor powering the headline number was a 29.3% jump in multi-family homebuilding to a seasonally adjusted annual pace of 406,000 units.
An increase in groundbreaking activity was experienced in the South, West and Midwest. However, building permits for the month declined by 5.7% from July to 1.229 million units. This represents an annual decline of 5.5% and is the lowest level observed since May 2017.
Homebuilder Confidence Remains Flat in September
Meanwhile, the National Association of Home Builders/Wells Fargo Housing Market Index remained flat at 67 in September. This represents a three-point increase from the level observed a year ago.
Current sales conditions increased from 73 to 74 points. Also, expectations over the next six months rose from 72 to 74 points. Buyer traffic remained unchanged at 49 points.
Robust demand for housing, particularly from Millennials and other newcomers entering the market, is a major reason for the continuing strength in homebuilder confidence. The recently observed fall in lumber prices from the record levels experienced earlier this summer is another major positive for the sector.
Softwood lumber prices decreased 9.6% in August from the prior month, according to the latest release by ABC. Although the August figure was up 5% on a yearly basis, it was down from 19.5% in July. (Read: Homebuilder Confidence Stays Steady in September: 5 Top Picks)
Our Choices
A robust job market, wage gains and tax cuts are helping to boost demand for housing. These factors have led housing starts to jump to a three-month high in August. While housing demand remains strong, the decline in lumber prices is another major positive for the sector.
Investing in stocks gaining from strong housing demand looks like a prudent option at this point. However, picking winning stocks may be difficult.
This is where our VGM Score comes in. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks and select winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM Score.
PulteGroup Inc. engages in the homebuilding and financial services businesses primarily in the United States.
PulteGroup has a VGM Score of A. The company’s expected earnings growth for the current year is 61.2%. The Zacks Consensus Estimate for the current year has improved by 6.6% over the last 60 days.
PGT Innovations, Inc. is a leading manufacturer and supplier of residential impact-resistant windows and doors.
PGT Innovations has a VGM Score of A. The company has expected earnings growth of 81.2% for the current year. The Zacks Consensus Estimate for the current year has improved by 1.4% over the last 30 days.
D.R. Horton, Inc. is one of the leading national homebuilders, primarily engaged in the construction and sale of single-family houses both in the entry-level and move-up markets.
D.R. Horton has a VGM Score of B. The company’s projected growth rate for the current year is 41.4%. The Zacks Consensus Estimate for the current year has improved by 0.8% over the last 30 days.
Comfort Systems USA, Inc. is a national provider of comprehensive heating, ventilation and air conditioning installation, maintenance, repair and replacement services.
Comfort Systems has a VGM Score of B. The company’s expected earnings growth for the current year is 56.3%. The Zacks Consensus Estimate for the current year has improved by 6.3% over the last 60 days.
Armstrong Flooring, Inc. is engaged in the design and manufacture of flooring solutions primarily in North America.
Armstrong Flooring has a VGM Score of B. The company’s projected growth rate for the current year is more than 100%. The Zacks Consensus Estimate for the current year has improved by 79.2% over the last 60 days.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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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The Zacks Analyst Blog Highlights: PulteGroup, PGT Innovations, D.R. Horton, Comfort Systems USA and Armstrong Flooring
For Immediate Release
Chicago, IL – September 21, 2018 – 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 PulteGroup Inc. (PHM - Free Report) , PGT Innovations, Inc. , D.R. Horton, Inc. (DHI - Free Report) , Comfort Systems USA, Inc. (FIX - Free Report) and Armstrong Flooring, Inc. .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday’s Analyst Blog:
Housing Starts Hit 3-Month High: 5 Top-Ranked Picks
Housing starts climbed to their highest level in three months in August. Powering the gains was a significant jump in multifamily housing starts. In comparison, single-family homebuilding accrued modest gains. The decline in building permits was a cause for concern, however, since the metric is a reliable indicator of future homebuilding activity.
At the same time, a robust job market, wage gains and the Trump administration’s tax cuts have helped to bolster housing demand. This is the primary factor supporting the housing sector in the face of multiple headwinds, including tariffs and rising mortgage rates.
Additionally, a decline in lumber prices has helped a crucial gauge of homebuilder confidence remain unchanged in September. Adding stocks gaining from strong housing demand looks like a smart option at this time.
Multifamily Starts Boost Headline Number
In August, privately owned housing starts increased by 9.2% from July’s pace to a seasonally adjusted annual level of 1.282 million units. This represents a year-over-year increase of 9.4%. It is also significantly higher than the estimated level of 1.232 million units. Additionally, the figure for July was revised upward to 1.174 million units.
Single-family housing starts increased modestly, by 1.9% to a pace of 876,000 units in August. The major factor powering the headline number was a 29.3% jump in multi-family homebuilding to a seasonally adjusted annual pace of 406,000 units.
An increase in groundbreaking activity was experienced in the South, West and Midwest. However, building permits for the month declined by 5.7% from July to 1.229 million units. This represents an annual decline of 5.5% and is the lowest level observed since May 2017.
Homebuilder Confidence Remains Flat in September
Meanwhile, the National Association of Home Builders/Wells Fargo Housing Market Index remained flat at 67 in September. This represents a three-point increase from the level observed a year ago.
Current sales conditions increased from 73 to 74 points. Also, expectations over the next six months rose from 72 to 74 points. Buyer traffic remained unchanged at 49 points.
Robust demand for housing, particularly from Millennials and other newcomers entering the market, is a major reason for the continuing strength in homebuilder confidence. The recently observed fall in lumber prices from the record levels experienced earlier this summer is another major positive for the sector.
Softwood lumber prices decreased 9.6% in August from the prior month, according to the latest release by ABC. Although the August figure was up 5% on a yearly basis, it was down from 19.5% in July. (Read: Homebuilder Confidence Stays Steady in September: 5 Top Picks)
Our Choices
A robust job market, wage gains and tax cuts are helping to boost demand for housing. These factors have led housing starts to jump to a three-month high in August. While housing demand remains strong, the decline in lumber prices is another major positive for the sector.
Investing in stocks gaining from strong housing demand looks like a prudent option at this point. However, picking winning stocks may be difficult.
This is where our VGM Score comes in. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks and select winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM Score.
We have narrowed down our search to the following stocks, each of which has a Zacks Rank #1 (Strong Buy) and a good VGM Score. You can see the complete list of today’s Zacks #1 Rank stocks here.
PulteGroup Inc. engages in the homebuilding and financial services businesses primarily in the United States.
PulteGroup has a VGM Score of A. The company’s expected earnings growth for the current year is 61.2%. The Zacks Consensus Estimate for the current year has improved by 6.6% over the last 60 days.
PGT Innovations, Inc. is a leading manufacturer and supplier of residential impact-resistant windows and doors.
PGT Innovations has a VGM Score of A. The company has expected earnings growth of 81.2% for the current year. The Zacks Consensus Estimate for the current year has improved by 1.4% over the last 30 days.
D.R. Horton, Inc. is one of the leading national homebuilders, primarily engaged in the construction and sale of single-family houses both in the entry-level and move-up markets.
D.R. Horton has a VGM Score of B. The company’s projected growth rate for the current year is 41.4%. The Zacks Consensus Estimate for the current year has improved by 0.8% over the last 30 days.
Comfort Systems USA, Inc. is a national provider of comprehensive heating, ventilation and air conditioning installation, maintenance, repair and replacement services.
Comfort Systems has a VGM Score of B. The company’s expected earnings growth for the current year is 56.3%. The Zacks Consensus Estimate for the current year has improved by 6.3% over the last 60 days.
Armstrong Flooring, Inc. is engaged in the design and manufacture of flooring solutions primarily in North America.
Armstrong Flooring has a VGM Score of B. The company’s projected growth rate for the current year is more than 100%. The Zacks Consensus Estimate for the current year has improved by 79.2% over the last 60 days.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential 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.