For Immediate Release
Chicago, IL - June 18, 2015 - 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 the Wolseley plc ( WOSYY ), Tecnoglass Inc. ( TGLS ) and Watsco Inc. ( WSO ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Wednesday's Analyst Blog:
Housing Ready for Takeoff? 3 Stock Picks
Despite a decline in housing starts, most of the housing data which has come in this month reveals that the housing sector is ready to make considerable gains. While building permits have hit a near six-year high, home builder sentiment has also spiked. Earlier in the month, construction spending data provided further evidence that the housing market was heating up.
Starts Decline, Permits Spike
Housing starts declined in May after soaring to its highest level in almost seven and a half years in April. Privately-owned housing starts declined 11.1% to 1,036,000 in May, somewhat offsetting gains made in April. However, April's figure was revised upward to 1,165,000, the largest since Nov 2007.
Construction on new homes fell last month due to a decline in single-family housing starts. Single-family housing starts fell 5.4% in May to 680,000 from April's revised figure of 719,000.
However, building permits increased at a rate of 11.8% in May to 1,275,000 from April's revised figure of 1,140,000. The annual pace of permits for new construction hit the fastest pace since Aug 2007. This rise in building permits was in contrast to the consensus estimate of a decrease to 1,113,000.
Homebuilder Sentiment Rises
Additionally, U.S. homebuilder sentiment increased to a nine-month high in June. The National Association of Home Builders (NAHB)/Wells Fargo housing market index rose five points from May to 59 in June, in line with the Sep 2014 reading. September's reading was the highest since Nov 2005 and also exceeded market expectation of the index hitting 56.
Meanwhile, the report also showed that the index that measures sales expectations for the next six months jumped six points to 69 in June. Also, the index measuring buyer traffic increased five points to 44.
Construction Spending Increases
U.S. construction spending touched its highest level in more than six years in April, gaining 2.2% gain. The percentage rise in construction spending in April was the largest since May 2012. March's outlays were revised up 0.5% in contrast to the earlier decline of 0.6%.
April's figure was also 4.8% higher than the year-ago figure. Moreover, for the first four months of 2015, construction spending amounted to $288.7 billion, which was 4.1% higher than the same period last year.
Spending on private construction went up 1.8% to an annual rate of $725.2 billion, its highest level since Oct 2008. While outlays on private residential construction increased 0.6% to a rate of $353.1 billion, spending on private non-residential construction climbed 3.1%, a six-year high.
The series of data indicates that housing is showing a healthy pace of growth. Below we present three stocks which are poised to gain from the potential housing takeoff. Finding a great value stock can be a tough task. But thanks to our new style score system we have been able to identify a few growth stocks which have incredible potential in the near term.
Our research shows that stocks with Value Style Scores of 'A' or 'B' when combined Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy) offer the best investment opportunities in the value investing space.
Wolseley plc ( WOSYY ) is the world's largest trade distributor of plumbing and heating products and a leading supplier of building materials. Wolseley operates across US, Canada, the Nordic region, the UK and Central Europe and France.
Wolseley holds a Zacks Rank #2 (Buy) and has a Value Style Score of 'A.' The company has expected earnings growth of 12.7% for the current year. The forward price-to-earnings ratio (P/E) for the current financial year (F1) is 18.20.
Tecnoglass Inc. ( TGLS ) is engaged in manufacturing and selling architectural glass and windows and aluminum products for the residential and commercial construction industries.
Apart from a Zacks Rank #2 (Buy), Tecnoglass has a Value Style Score of 'B.' The company has expected earnings growth of 41.5% for the next year and a P/E (F1) of 15.27x.
Watsco Inc. ( WSO ) is the largest distributor of heating, ventilation and air conditioning equipment as well as related parts and supplies (HVAC/R) in the U.S. The company's equipment is sold to the residential replacement market, the commercial market and residential new construction market.
Watsco holds a Zacks Rank #2 (Buy) and has a Value Style Score of 'B.' The company has expected earnings growth of 18.8% for the current year and a P/E (F1) of 23.96x.
The end of winter's chill has brought much needed warmth to the housing sector. This is being consistently borne out by a slew of positive reports. This is why these stocks would make prudent additions to your portfolio.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report