These days, everyone wants a bite of the construction apple–and analysts are falling all over themselves to upgrade companies with exposure to commercial spending. Citigroup did it when looking at the industrial space today, and Morgan Stanley is following suit with its look at the machinery space and upgrade of Manitowoc (MTW).
Dan NeilAnalyst Nicole DeBlase and team write:
Seek out Construction exposure and use caution when investing in Ag and Mining -driven names. We now officially classify ourselves as Non-Resi bulls ��we believe 2014e will (finally) be the year of recovery, with increased confidence stemming from leading indicators and the fact that homebuilders are now constructing new communities. Although [consensus] bakes in a mild recovery (~5% Non-Resi growth), once this begins to play out, positive sentiment, stronger incremental margins, and 2015-16e upside should drive [outperformance]. At the same time, we cannot yet identify the demand trough for Ag/ Mining equipment ��although we are probably closer for Mining than for Ag.
Hot Railroad Stocks To Own For 2015: Eagle Materials Inc (EXP)
Eagle Materials Inc., incorporated on January 27, 1994, manufactures and distributes gypsum wallboard and also manufactures and sells cement. Gypsum wallboard is distributed throughout the United States with particular emphasis in the geographic markets nearest to its production facilities. The Company sells cement in six regional markets, including northern Nevada and California, the greater Chicago area, the Rocky Mountain region, the Central Plains region and Texas. Its gypsum wallboard business is supported by its recycled paperboard business, while its cement business is supported by its concrete and aggregates business. The Company operates in Cement and Concrete and Aggregates, and Gypsum Wallboard and Recycled Paperboard segments. As of March 31, 2013, the Company operated six cement plants (one of which belongs to its joint venture company), five gypsum wallboard plants, one recycled paperboard plant, seventeen concrete batching plants and four aggregates facilities. The Company�� products are used in the construction and renovation of houses, roads, bridges, commercial and industrial buildings and other, newer generation structures like wind farms.
Cement, Concrete and Aggregates Operations
The Company�� cement production facilities are located in or near Buda, Texas; LaSalle, Illinois; Laramie, Wyoming; Sugar Creek, Missouri; Tulsa, Oklahoma and Fernley, Nevada. The Company�� cement subsidiaries are wholly-owned except the Buda, Texas plant, which is owned by Texas Lehigh Cement Company LP, a limited partnership joint venture owned 50% by the Company and 50% by Lehigh Cement Company LLC, a subsidiary of Heidelberg Cement AG. Its LaSalle, Illinois plant operates under the name of Illinois Cement Company; the Laramie, Wyoming plant operates under the name of Mountain Cement Company; the Fernley, Nevada plant operates under the name of Nevada Cement Company and its Sugar Creek, Missouri and Tulsa, Oklahoma plants operate under the name Central Plains Cement Com! pany. The Company produces and distributes ready-mix concrete from Company-owned sites north of Sacramento, California; Austin, Texas and the greater Kansas City area. The Company�� activities in its frac sand business are in the Utica, Illinois area and in south Texas. The Company sells aggregates to building contractors and other customers engaged in a variety of construction activities.
Gypsum Wallboard and Recycled Paperboard Operations
The Company owns five gypsum wallboard manufacturing facilities. As of March 31, 2013, the Company�� gypsum wallboard production totaled 1,950 million square feet. Total gypsum wallboard sales were 1,909 million square feet during the fiscal year ended March 31, 2013 (fiscal 2013). The Company also manufactures alternative products, including containerboard grades (such as linerboard and medium) and lightweight packaging grades (such as bag liner). In addition, recycled industrial paperboard grades (tube/core stock and protective angle board stock) are produced to maximize manufacturing efficiencies. The Company�� manufactured recycled paperboard products are sold to gypsum wallboard manufacturers and other industrial users.
The Company competes with USG Corporation, National Gypsum Company and Koch Industries.
Advisors' Opinion:- [By Dan Caplinger]
Tomorrow, Eagle Materials (NYSE: EXP ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.
- [By Rich Duprey]
Cement and building materials maker�Eagle Materials� (NYSE: EXP ) �announced yesterday�its second-quarter dividend of $0.10 per share, the same rate it's paid since 2008.
Top 10 Construction Stocks To Buy Right Now: Stock Building Supply Holdings Inc (STCK)
Stock Building Supply Holdings, Inc., incorporated on April 16, 2009, is a diversified lumber and building materials (LBM) distributor and solutions provider that sells to new construction and repair and remodel contractors. The Company�� primary products are lumber & lumber sheet goods, millwork, doors, flooring, windows, structural components, such as engineered wood products (EWP), trusses, wall panels and other exterior products. The Company serves a customer base, including large-scale production homebuilders, custom homebuilders and repair and remodeling contractors. In addition, the Company provides solution-based services to its customers, including design, product specification and installation management services. The Company�� primary operating regions include the South and West regions of the United States.
The Company provides a balanced mix of products and services to the United States production and custom homebuilders and repair and remodel, multi-family and commercial contractors. The Company offer over 39,000 products sourced through its strategic network of suppliers, which together with its various solution-based services; represent approximately 50% of the construction cost of a new home.
Advisors' Opinion:- [By Monica Gerson]
Stock Building Supply Holdings (NASDAQ: STCK) dipped 1.53% to $19.95 in the pre-market session after the company prices 5.6 million shares at $19.50 per share by selling shareholders.
Top 10 Construction Stocks To Buy Right Now: Holcim Ltd (HOLN)
Holcim Ltd (Holcim) is a Switzerland-based holding company that specializes in the manufacture, distribution and marketing of building materials. The Company operates four business segments, including Cement, Aggregates, Other construction materials and services, and Corporate. The Cement segment is engaged in the development of cement and comprises clinker and other cementitious materials, among others. The Aggregates business segment includes crushed stone, gravel and sand. The Other construction materials and services business segment comprises ready-mix concrete, concrete products, asphalt, construction and paving, and trading, among others. Additionally, other construction materials and services segment provides environmental services, including waste management, among others. The Corporate segment is engaged in holding activities and general management. It operates through subsidiaries in Asia Pacific, Latin America, Europe, North America, Africa and Middle East regions. Advisors' Opinion:- [By Sofia Horta e Costa]
Holcim Ltd. (HOLN) lost 0.9 percent to 68.15 francs in Zurich. Bank of America Corp.�� Merrill Lynch unit cut its rating on the world�� largest cement maker to underperform, similar to a sell recommendation, from neutral. Merrill Lynch cited the company�� exposure to emerging markets.
Top 10 Construction Stocks To Buy Right Now: Mostostroy No6 OAO (MSTF)
Mostostroy No6 OAO (Mostostroitel��yi trest No 6 OAO or Bridge Construction Trust N 6 OJSC) is a Russia-based company engaged in the construction industry. Its services portfolio includes the design, construction, reconstruction and renovation of bridges, railways, highways, tunnels and subways, nuclear and thermal power stations, residential and industrial facilities, among others. Mostostroitel��yi trest No 6 OAO provides its services mainly to companies engaged in the transportation, hydraulic engineering, industrial, civil and nuclear construction sectors and its customers include ROSATOM and Russian Railways, among others. The Company operates through 10 branches, as well as two representative offices, located in Moscow and Sochi. In addition, it has five wholly owned subsidiaries. As of March 4, 2011, the Company�� major shareholder was Malakhit OOO with a stake of 19.85%. Advisors' Opinion:- [By Tom Taulli]
But again, the most glaring red flag is the valuation of GOOG stock. Shares of Google stock are currently trading at a P/E ratio of 30, which is certainly rich. Consider that�Apple (AAPL) and �Microsoft (MSTF) sport multiples of only about 14. These companies also have decent dividend yields.
Top 10 Construction Stocks To Buy Right Now: Fortune Brands Home & Security Inc (FBHS)
Fortune Brands Home & Security, Inc., incorporated on June 9, 1988, is engaged in home and security products with companies focused on the design, manufacture and sale of products in Kitchen & Bath Cabinetry, Plumbing & Accessories, advanced material windows & entry door Systems, and security and storage products. The Company operates through four business segments: Kitchen & Bath Cabinetry, Plumbing & Accessories, Advanced Material Windows & Door Systems, and Security & Storage. The Kitchen & Bath Cabinetry segment manufactures custom, semi-custom, and stock cabinetry for the kitchen, bath, and other areas of the home. Plumbing & Accessories segment manufactures and assembles faucets, accessories, and kitchen sinks. The Advanced Material Windows & Door Systems segment manufactures and sells fiberglass and steel entry door systems. The Security & Storage segment provides locks, safety, and security devices and electronic security products. In June 2013, Fortune Brands Home & Security Inc completed the acquisition of WoodCrafters Home Products.
Kitchen & Bath Cabinetry
The Company�� Kitchen & Bath Cabinetry segment�� products includes brand names, such as Aristokraft, Omega, Kitchen Craft, Schrock, Diamond, HomeCrest, Decora, Kemper, Thomasville and Martha Stewart Living. Principally all of this segment�� sales are in North America. The Company sells directly to kitchen and bath dealers, home centers, wholesalers and builders. During the year ended December 31, 2012, sales to The Home Depot and Lowe's consisted of approximately 32% of net sales of the Kitchen & Bath Cabinetry segment.
The Company competes with Masco and American Woodmark.
Plumbing & Accessories
The Plumbing & Accessories segment manufactures accessories and kitchen sinks in North America, China and India, predominantly under the Moen brand. The sells its Plumbing & Accessories products principally in the United States and Canada. It also sells them in China, India, ! Mexico, South America and Southeast Asia. It sells directly through its own sales force and indirectly through independent manufacturers��representatives, primarily to wholesalers, home centers, mass merchandisers and industrial distributors. During 2012, sales to The Home Depot and Lowe's consisted of approximately 29% of net sales of the Plumbing & Accessories segment.
The Company competes with Delta, Kohler, Pfister and American Standard.
Advanced Material Windows & Door Systems
The Company�� Advanced Material Windows & Door Systems segment manufactures fiberglass and steel entry door systems, vinyl-framed window and patio doors, and urethane millwork product lines. Therma-Tru products include fiberglass and steel residential entry door and patio door systems, primarily for sale in the United States and Canada. Simonton brand of vinyl-framed windows and patio doors are mainly manufactured and sold in the United States. The segment�� principal customers are home centers, millwork building products and wholesale distributors, and specialty dealers that provide products to the residential new construction market, as well as to the remodeling and renovation markets. During 2012, sales to The Home Depot and Lowe�� comprised approximately 17% of net sales of the Advanced Material Windows & Door Systems segment.
The Company competes with Masonite, JELD-WEN and Plastpro, Silverline, Atrium and Milgard.
Security & Storage
The Company�� Security & Storage segment consists of locks, safety and security devices, and electronic security products manufactured, sourced and distributed by Master Lock and tool storage and garage organization products manufactured by Waterloo. The segment sells products principally in the United States Canada, Europe, Australia and Central America. Master Lock manufactures and sells key-controlled and combination padlocks, bicycle and cable locks, built-in locker locks, door hardware, automotive, t! railer an! d towing locks, and other specialty safety and security devices. Master Lock sells products for consumer use to hardware and other retail outlets, wholesale distributors and home centers, industrial and institutional users, original equipment manufacturers and retail outlets. During 2012, Security & Storage sales to international markets comprised approximately 20% of sales.
Waterloo manufactures tool storage and garage organization products, steel toolboxes, tool chests, workbenches and related products. Waterloo primarily sells to Sears retail stores. In addition, Waterloo sells under the Waterloo and private-label brand names to specialty industrial and automotive dealers, mass merchandisers, home centers and hardware stores.
The Company competes with Asian importers, Homak, Stanley Black & Decker, Snap-On, Kennedy, Stack-On and others in the metal storage segment and with Stanley Black & Decker, Keter, Newell Rubbermaid
Advisors' Opinion:- [By Joseph Gacinga]
Another notable case is the spinoff of Fortune Brands Home & Security (NYSE: FBHS ) from Beam (NYSE: BEAM ) in 2011. Fortune Brands Home & Security shares have climbed at a much faster clip than Beam's shares since then.
- [By Travis Hoium]
What: Shares of Fortune Brands Home & Security (NYSE: FBHS ) jumped as much as 11% in early trading after the company released earnings.
- [By John Udovich]
After the bedroom, the kitchen is probably the place where we spend the most time awake in our homes with small cap kitchen stocks Caesarstone Sdot-Yam Ltd (NASDAQ: CSTE) and American Woodmark Corporation (NASDAQ: AMWD) along with diversified midcap Fortune Brands Home & Security Inc (NYSE: FBHS) all putting in a good performance. After all, any sort of housing recovery with more new homes being sold will�help kitchen stocks and so will increased sales of older or foreclosed homes that need to have their kitchens remodeled. But which is the better kitchen stock for investors? Here is�closer look at all three:
Top 10 Construction Stocks To Buy Right Now: Alexandria Real Estate Equities Inc. (ARE)
Alexandria Real Estate Equities, Inc., a real estate investment trust (REIT), engages in the ownership, operation, management, development, acquisition, and redevelopment of properties for the life sciences industry. Its properties consist of buildings containing scientific research and development laboratories, and other improvements. The company offers its properties for lease primarily to universities and independent not-for-profit institutions; and pharmaceutical, biotechnology, medical device, life science product, service, biodefense, and translational research entities, as well as governmental agencies. As of December 31, 2006, it had 159 properties, including 156 properties located in 9 states in the United States and 3 properties located in Canada. As a REIT, the company is not subject to federal income tax to the extent that it distributes 100% of its taxable income to its stockholders. The company was founded in 1993 and is based in Pasadena, California.
Advisors' Opinion:- [By Markus Aarnio]
Owens Realty Mortgage's competitors include American Assets Trust (AAT), Alexandria Real Estate Equities (ARE) and Boston Properties (BXP). American Assets Trust has seen five insider buy transactions and four insider sell transactions this year. American Assets Trust has a dividend yield of 2.78%. Alexandria Real Estate Equities has seen 14 insider sell transactions this year. Alexandria Real Estate Equities has a dividend yield of 4.10%. Boston Properties has seen one insider buy transaction and four insider sell transactions this year. Boston Properties has a dividend yield of 2.43%.
- [By Bill Stoller]
After a banner 2013, the overall market has had a challenging start to 2014. However, these four companies have been crushing it: Alexander Real Estate (NYSE: ARE ) , BioMed Realty Trust (NYSE: BMR ) , CommonWealth REIT (NYSE: CWH ) , and Sun Communities (NYSE: SUI ) early on in 2014 vs. the S&P 500. Their relative out-performance can also be seen when compared to the Vanguard REIT Index ETF (NYSEMKT: VNQ ) a good yardstick to measure sector performance.
- [By Shauna O'Brien]
Real estate investment trust Alexandria Real Estate Equities Inc (ARE) announced on Tuesday that its board has approved a 4.6% increase to its quarterly dividend.
The firm has raised its dividend from 65 cents to 68 cents per share, or $2.72 annually. The dividend will be paid on October 15 to shareholders of record on September 30. The stock will go ex-dividend on September 26.
Alexandria Real Estate Equities shares were mostly flat during pre-market trading Tuesday. The stock is down 9% YTD.
Top 10 Construction Stocks To Buy Right Now: Bouygues SA (BOUYF.PK)
Bouygues SA is a France-based group that operates in two sectors: Telecommunications and Media, and Construction. The Construction division comprises three core subsidiaries: Bouygues Construction, specializing in building and public works activities, notably in the areas of electrical engineering, and facility maintenance; Bouygues Immobilier, a property development company, whose activities include the development of residential, corporate and commercial properties, and the execution of urban development schemes, and Colas, engaged in the construction and maintenance of transport, urban development and leisure infrastructure. The Telecommunications and Media division of the Group comprises two companies: TF1, specializing in audiovisual and cinema production, the acquisition and sale of audiovisual rights, and the publishing and distribution of compact discs, among others, and Bouygues Telecom, which offers mobile telephone and broadband Internet services. Advisors' Opinion:- [By Mike Arnold]
I normally don't look at charts much, but comparing Orange to its competitors in the French telecommunications market is quite fascinating. As one can see, incumbents Bouygues (BOUYF.PK) and Vivendi (VIVHY.PK) (owner of SFR) saw similar price declines. The market, on the other hand, rapidly bid up the price of new entrant Iliad SA (ILIAF.PK), as a result of forecasts for Iliad to capture significant mobile market share (which it did, around 10%). The wide divergence in price relative to changes in underlying value favor going long the incumbents, including Orange. Because this time it's different.
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