The Zacks Analyst Blog Highlights PGT Innovations , Owens Corning, Watsco, James Hardie Industries and Arcosa
For Immediate Release
Chicago, IL – July 6, 2023 – 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: PGT Innovations, Inc. PGTI, Owens Corning OC, Watsco, Inc. WSO, James Hardie Industries plc JHX and Arcosa, Inc. ACA.
Here are highlights from Wednesday’s Analyst Blog:
Five Building Product Stocks Up More than 40% Year to Date
The Zacks Construction sector has been displaying strength since the beginning of 2023, despite housing slowdown and other macro-economic woes. The solid improvement in infrastructural and public construction spending, a recent improvement in the housing and R&R activities and favorable pricing dynamics has been aiding the companies indulged in the building products.
Companies like PGT Innovations, Inc., Owens Corning, Watsco, Inc., James Hardie Industries plc and Arcosa, Inc. have been gaining from their fundamental strength and the above-mentioned tailwinds. While PGTI, JHX and ACA currently sport a Zacks Rank #1 (Strong Buy), OC and WSO carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
In the year-to-date period, the construction sector and the S&P 500 index gained 29.1% and 17%, respectively.
The Zacks Building Products - Miscellaneous industry, which gained 28.5% year to date, has been benefiting from strong global trends in infrastructure modernization, energy transition, national security and a potential super-cycle in global supply-chain investments. Also, solid momentum in the R&R markets and improving residential construction markets are expected to drive growth.
Moreover, the Zacks Building Products - Concrete & Aggregates industry and the Zacks Building Products - Air Conditioner & Heating industry also gained % and % in the same period.
An improving non-residential construction market and favorable pricing dynamics are offsetting macroeconomic uncertainties, supply-chain disruptions, weather-related woes and higher labor costs for Building Products - Concrete & Aggregates industry players.
The Air Conditioner & Heating industry players are capitalizing on the recent opportunities associated with the energy transition and the pro-environmental drive. They are also experiencing growing demand for renewable generation and solutions in 2023 and beyond.
Also, the demand for new homes, which is improving in lower-density markets, effective cost control and higher operating leverage are offsetting challenges like higher inflationary pressure, tight labor and tightening credit conditions on construction loans. These positives are benefiting the Zacks Building Products - Home Builders industry and its supportive building materials and other industries.
A Look at the Listed Companies' Prospect
PGT Innovations: This North Venice, FL-based company is one of the nation's leading manufacturers and suppliers of residential impact-resistant windows and doors. A diversified product portfolio to capture profitable growth in new construction and R&R channels, customer-centric innovation, manufacturing improvements and a series of pricing actions in response to the rising cost pressure have been aiding the company. Also, strategic acquisitions have expanded its footprint into new regions, channels or products via advanced technologies, enhanced manufacturing or supply chain capabilities. These buyouts are aligned with growth priorities and are expected to boost shareholder value over the long term.
The Zacks Consensus Estimate for PGTI's 2023 earnings has been upwardly revised to $2.01 per share from $1.90 in the past 30 days. Its earnings topped consensus estimates in three of the trailing four quarters and lagged on one occasion, with the average surprise being 19.1%. It holds a VGM Score of B.
Owens Corning: Headquartered in Toledo, OH, Owens Corning produces and sells building material systems and composite solutions. It has been benefiting from market-leading businesses, innovative products, process technologies and capabilities. With positive momentum in residential end markets and the R&R market, particularly in the United States, improved manufacturing leverage and strong cost controls will likely help the company deliver solid results.
The Zacks Consensus Estimate for OC's 2023 earnings has been revised upward to $10.64 per share from $10.52 in the past week. Its earnings topped consensus estimates in the trailing four quarters, with the average surprise being 15.1%. Also, it holds a VGM Score of B.
James Hardie Industries: The company pioneered the development of fiber cement technology in the 1980s. JHX has many product applications, including external siding, trim and fascia, ceiling lining and flooring, partitioning, decorative columns, fencing and drainage pipes.
The Zacks Consensus Estimate for JHX's 2023 earnings has been upwardly revised to $1.25 per share from $1.22 in the past 30 days.
Arcosa: This Dallas, TX-based company provides infrastructure-related products and solutions. The company focuses on its long-term vision to lower the complexity of Arcosa's overall portfolio and shift its business mix toward less cyclical, higher-margin growth opportunities that leverage core strengths and drive long-term shareholder value creation. It has completed the previously-announced sale of its storage tanks business and aims to invest the proceeds into its key growth businesses. Also, ACA's inorganic drive to expand its portfolio and improved efficiencies in utility structures business coupled with the solid execution in cyclical businesses, should drive growth.
Arcosa has gained 40.6% in the year-to-date period. ACA has seen an upward estimate revision to $2.77 per share from $2.45 for 2023 earnings in the past 60 days. The company's earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 59.9%.
Watsco: Headquartered in Miami, FL, the company distributes air conditioning, heating and refrigeration equipment, along with related parts, in the United States, Canada, Mexico and Puerto Rico. It has been benefiting from an improvement in the e-commerce business, strong performance across geographies and product categories, backed by a richer mix of high-efficiency systems, solid heat pump sales, a solid commercial business, product diversity and technology-driven gains in market share. Increased focus on accretive acquisitions and enhanced shareholders' value bode well.
Watsco has gained 51.5% in the year-to-date period. WSO has seen an upward estimate revision for 2023 earnings to $14.51 per share from $14.50 in the past 60 days. Its earnings topped consensus estimates in two of the trailing four quarters and lagged on other two occasions, with the average surprise being 5.3%.
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Watsco, Inc. (WSO) : Free Stock Analysis Report
Owens Corning Inc (OC) : Free Stock Analysis Report
James Hardie Industries PLC. (JHX) : Free Stock Analysis Report
PGT, Inc. (PGTI) : Free Stock Analysis Report
Arcosa, Inc. (ACA) : Free Stock Analysis Report
