LGI Homes And TopBuild: Two Ways To Play The Housing Recovery In The Stock Market
http://www.forbes.com/sites/maggiemcgrath/2015/11/24/lgi-hom…
With household formation at 1.3 million households formed this quarter and brand new data from S&P/Case-Shiller showing that home prices increased in September, all signs are pointing to a housing recovery that is alive and well…
“Household formation has broken out over the past 5 quarters; the 4 million household deficit from the housing crisis should still drive several years of above average housing starts to absorb the post-crisis housing unit deficit, led by falling vacancy rates and rising prices,”…
…“LGI trades at just 10.4-times fiscal 2016 earnings per share consensus, and has a 22% ROE,” he writes. “We believe solid execution, a strong niche position with entry-level homebuyers, a proven sales and marketing process and tight inventory and construction management underpins significant further appreciation potential over the next 12 months.”…
LGI and TopBuild are at the top of Fundstrat’s Top 20 Money List, coming in first and second place (respectively). Other names that rank high on the list include building materials company Masco Corp (like LGI, it also trades at 10.4 times forward earnings), Sabre Corp and Haynes International.
These 4 Top Growth Stocks Boast Big Profit Growth
http://news.investors.com/112515-782577-lgi-homes-others-pos…
It usually pays to buy stocks with strong earnings growth. IBD research shows that the market’s biggest winners from 1952 to 2001 posted profit growth of more than 70% in the quarter before they began their big runs superior products and services.
Four companies in Wednesday’s Spotlight screen meet that criteria — LGI Homes (NASDAQ:LGIH), JetBlue (NASDAQ:JBLU), Dycom Industries (NYSE:DY) and ServiceNow (NYSE:NOW). One is in buying range, and two are working on bases…
Texas-based homebuilder LGI Homes has also doubled this year on strong demand for entry-level homes in fast-growing markets in Texas, Arizona, Florida and Georgia. Profit growth has accelerated for three straight quarters, rising a better-than-expected 124% in Q3 to 76 cents a share. It’s working on a possible base with a 33.97 buy point.
You know I like Dycom, so here is the snippet on it.
Dycom, which provides engineering, construction and installation services to telecom companies, has more than doubled this year amid earnings growth ranging from 102% to 152% over the past three quarters. It’s now just out of buying range after clearing an 80.95 flat-base entry Nov. 3.
Dycom is “reaping considerable benefits from increased demand for network bandwidth and mobile broadband, given the proliferation of smartphones,” Zacks Equity Research said Tuesday following Dycom’s Q3 results.
They have a couple of chart pictures…
http://news.investors.com/photopopup.aspx?path=ss112715.gif&…
LGI up over 6% today. An article like this could push a small stock like LGIH up.