For Immediate Release
Zacks Industry Rank Analysis is written by John Blank, PhD, Chief Equity Strategist, Zacks.com.
Knock on Wood
Sitting just last week at #192 on the Zack’s Industry Rank list, strong recent demand for building materials --and upgrades to earnings estimate revisions that followed-- pushed key players in the timber industry back into the spotlight.
This week, the Building Products/Wood Industry enjoys a Zack’s Industry Rank of #32.
Within the Building Products/Wood Industry of eight companies, there have been 5 recent positive revisions to annual earnings estimates and 0 negative revisions. Positive estimate revisions have been averaging +15%. Admittedly, there are also a couple of sour earnings surprises to report too.
Construction benefits directly from strong home construction volumes and rapidly improving home prices. Industrial, Retail and Commercial demand for building products and wood has rebounded smartly too.
Given the diverse sources in market demand for these products, there’s reason to believe demand trends will continue to provide positive revenue growth support and further upward earnings estimate revisions. More favorable activity by the sector’s analysts should follow.
Sudden upward Zacks Rank company movement within a group, moving from a Hold to either a Buy or Strong Buy rank is important. It reflects fresh earnings estimate activity a savvy investor can take advantage of. Glance over the brief descriptions of our two Q4 earnings surprise candidates. Each was selected based on its current Zacks Rank #1 and the recent magnitude in positive earnings surprises.
Note: Q1-13 quarterly reporting arrives for both of these companies the third week of April.
Plum Creek Timber (PCL)
PCL is a Zacks Rank #1 (Strong Buy). It moved up from a hold just last week. This publicly-held timber REIT reports quarterly earnings on April 29, 2013.
The lumber, plywood, and medium density fiberboard (:MDF) producer offers an annual cash dividend of $1.68 which yields a nice 3.2% return, and showed us a recent +69% Q4 earnings beat. Plum Creek Timber is the second largest private timberland owner in the United States, with approximately 7.8 million acres of timberlands located in 19 states. Their timberlands are well diversified, not only by species mix, but also by age distribution.
Weyerhaeuser Co. (WY)
WY is a Zacks Rank #1 (Strong Buy). It was bumped to its #1 rating within the last week. It reports earnings on April 26, 2013.
The producer surprised on its Q4 EPS with a +37% beat.
Weyerhaeuser Company is principally engaged in growing and harvesting timber; the manufacture, distribution, and sale of forest products; real estate development and construction; and other real estate related activities. Its business segments are timberlands; wood products; pulp, paper and packaging; and real estate and related assets.
Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of the industries and the stocks poised to outperform the market. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=2564.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Len Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3:1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit From the Pros by going to http://at.zacks.com/?id=2565.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/ZacksInvestmentResearch
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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.
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Contact: Terry Ruffolo
More From Zacks.com