Jumping up Zacks Industry Ranks in response to revitalized
real estate demand.
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
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
Q1-13 quarterly reporting arrives for both of these companies the
third week of April.
Plum Creek Timber
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.
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.
PLUM CREEK TMBR (PCL): Free Stock Analysis
WEYERHAEUSER CO (WY): Free Stock Analysis
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