3 stocks of construction products and equipment valued for purchase to add to your 2022 portfolio

After a turbulent 2020, the construction sector experienced stronger growth than expected in 2021. This trend is expected to continue, with construction spending is expected to increase by 2.7% in 2022.

While supply chain bottlenecks, labor shortages, and volatile material costs are of concern for the construction products space, the high demand for multi-family properties due to a increase in population and modular buildings is expected to stimulate the growth of the industry. In addition, the adoption of efficient technologies is expected to improve the ability of companies in the construction products sector to secure new projects and increase their profit margins.

As a result, major inventories of Builders FirstSource, Inc. construction products and equipment (BLDR), Owens Corning (CO) and Simpson Manufacturing Co., Inc. (SSD) could be ideal choices for 2022.

FirstSource Builders, Inc. (BLDR)

BLDR is a supplier of structural construction products, manufactured components and construction services to the professional new residential construction, repair and renovation market. The company operates through four segments – North East; South East ; South; and West. Products manufactured by BLDR include its factory-built roof and floor trusses, wall panels, vinyl windows, custom millwork and trim, and engineered wood.

BLDR’s net sales increased 139.9% year-on-year to $ 5.51 billion in the third quarter ended September 30, 2021. Company gross margin increased 200.1% from value from last year to reach $ 1.71 billion. Its operating profit increased 499.2% from the previous year quarter to $ 837.44 million. In addition, the company’s net profit increased 613.5% year-on-year to $ 613.15 million.

Analysts expect BLDR’s revenue for fiscal 2021 to be $ 19.55 billion, up 128.5% year-over-year. The company has an impressive history of profit surprises; it has beaten consensus EPS estimates in each of the past four quarters. In addition, its EPS is expected to increase 201% in the current year. Its share price has risen 107% since the start of the year.

BLDR’s strong fundamentals are reflected in its POWR odds. The stock has an overall rating of B, which is equivalent to a purchase in our proprietary rating system. POWR ratings assess stocks based on 118 different factors, each with its own weight.

Additionally, the stock has a B rating for Momentum. We also rated BLDR for sentiment, value, quality, stability and growth. Click here to access all BLDR assessments. BLDR is ranked # 26 out of 61 stocks in the B rating Home improvement and property industry.

Owens Corning (CO)

Incorporated in 1938, OC manufactures and markets a line of composite insulation, roofing and fiberglass materials in the United States, Canada, Europe, Asia-Pacific and internationally. Composite materials; Insulation; and Roofing are the segments in which the company operates.

In October, OC introduced “Bourbon” as the shingle color of the year 2022 (SCOTY) and the newest color in the company’s TruDefinition Duration Designer Colors Collection line of shingles. This new introduction is expected to provide homeowners with high performance products while they invest in home improvement.

In the third quarter ended September 30, 2021, OC’s net sales increased 16.2% year-on-year to $ 2.21 billion. The company’s gross margin increased 24.9% from last year’s value to $ 596 million. His operating result increased 34.2% from the prior year quarter to $ 392 million. In addition, the company’s net profit increased 25.7% year-on-year to $ 259 million.

OC Revenue is Expected to Increase 5.4% YoY to $ 8.85 Billion in Fiscal Year 2022. The Company Has an Impressive History of Surprising Profits; it has beaten consensus EPS estimates in each of the past four quarters. In addition, its EPS is expected to increase by 68.5% in the current year. Additionally, the stock has gained 19.2% in the past year and 19% since the start of the year.

OC’s POWR ratings reflect this promising outlook. The stock has an overall rating of B, which is equivalent to a purchase in our proprietary rating system. Additionally, the stock has a B rating for value, momentum, and quality.

In addition to the POWR ratings that I just highlighted, we can see the OC ratings for growth, stability and sentiment. here. The stock is ranked 14th out of 55 stocks in the B rating Industrial – Building materials industry.

Simpson Manufacturing Co., Inc. (SSD)

SSD manufactures wood construction products that provide connectors, truss plates, fasteners, fasteners and bracing walls, as well as concrete construction products. The company also offers engineering and design services and software solutions that facilitate the specification, selection and use of its products. SSD markets its products in several countries, including the United States, Canada, France, United Kingdom, Germany, Denmark, Switzerland.

SSD net sales for the third quarter ended September 30, 2021 increased 8.9% year-on-year to $ 396.74 million. The company’s gross profit increased 14.3% from last year’s value to $ 198.03 million. Its operating profit increased 10.2% from the previous year quarter to $ 100.62 million. In addition, the company’s net profit increased 10% year-on-year to $ 73.78 million.

SSD’s revenue for fiscal 2022 is expected to be $ 1.8 billion, up 17.8% year-over-year. The company has exceeded consensus EPS in three of the past four quarters. Its EPS is expected to increase 27.9% in the current year. The stock has jumped 32.1% in the last nine months and 47.8% in the last year.

It’s no surprise that SSD has an overall rating of B, which equates to a purchase in our POWR rating system. Additionally, the stock has an A rating for quality and a B rating for momentum.

Click here to see additional POWR ratings for SSD (Sentiment, Stability, Growth and Value). SSD is ranked # 33 out of 92 stocks in the Industrial equipment industry.


BLDR stock was trading at $ 84.91 per share on Wednesday afternoon, up $ 0.45 (+ 0.53%). Year-to-date, the BLDR has gained 108.06%, compared to a 29.52% gain in the benchmark S&P 500 over the same period.

About the Author: Priyanka Mandal

Priyanka is an avid investment analyst and financial journalist. After get a master’s degree in economics, her interest in financial markets motivated her to start her career in investment research. Following…

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