8 Building-Products Stocks Leading the Housing Recovery

8. Universal Forest Products (UFPI)

Company profile: Universal Forest, with a market value of $742 million, manufactures lumber products, including pressure-treated wood, engineered roof trusses, dimension lumber, lattice, fence panels, deck components, and kits for a variety of outdoor projects.

Dividend Yield: 1%

Investor takeaway: Its shares are up 21% this year and have a three-year, average annual return of 5%. Analysts give its shares three "hold," ratings, according to a survey of analysts by S&P. In the first quarter, the company earned 21 cents per share versus a loss of 19 cents per share last year. Universal Forest Products said retail products sales rose 12% in the period and manufactured housing, 34%.

7. Masco (MAS)

Company profile: Masco, with a market value of $5 billion, is one of the largest housing-related manufacturing and service businesses in the U.S. as a maker of Delta Faucet plumbing products, KraftMaid Cabinetry, Behr paints, and Milgard Windows. The company also operates internationally, primarily in Europe.

Dividend Yield: 2.28%

Investor takeaway: Its shares are up 27% this year and have a three-year, average annual return of 17%. Analysts give its shares one "buy" ratings, one "buy/holds," 13 "holds," and three "weak holds," according to a survey of analysts by S&P. Analysts estimate it will earn 24 cents per share this year and that that will grow by 163% to 63 cents in 2013.

S&P has it rated "buy" and says it expects a modest new-home sales revival ahead, but "we see home repair and improvement spending picking up before new-home markets."

6. Lennox International (LII)

Company profile: Lennox, with a market value of $2 billion, makes products for the heating, ventilation, air conditioning and refrigeration industries.

Investor takeaway: Its shares are up 20% this year and have a three-year, average annual return of 12%. Analysts give its shares two "buy" ratings, one "buy/hold," six "holds," one "weak hold," and one "sell," according to a survey of analysts by S&P. Analysts estimate that it will earn $2.47 per share this year and $3.21 next, a 30% increase.

In the first quarter, Lennox lost a better-than-expected 1 cent per share on a 2% rise in revenue.

5. US Home Systems (USHS)

Company profile: US Home, with a market value of $63 million, makes home-improvement products. Its line of products includes replacement home appliances, cabinetry, countertops, and other resurfacing products.

Dividend Yield: 1.3%

Investor takeaway: Its shares are up 32% this year and have a three-year, average annual return of 62%. Analysts give its shares two "buy" ratings, according to a survey of analysts by S&P. Analysts estimate it will earn 69 cents per share this year and 84 cents per share in 2013.

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