This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

8 Building-Products Stocks Leading the Housing Recovery

Stocks in this article: MAS OC USG USHS AOS UFPI LII AWI

4. USG Corp. (USG)

Company profile: USG, with a market value of $2 billion, is a global manufacturer and distributor of building materials, including gypsum wallboard and ceilings as well as tile and flooring.

Investor takeaway: Its shares are up 78% this year and have a three-year, average annual return of 7%. Analysts give its shares three "buy" ratings, three "buy/holds," eight "holds," and two "weak holds," according to a survey of analysts by S&P.

S&P has it rated "buy," with a $25 price target, a 35% premium to its current price. S&P says the company "has solid long-term prospects" and after cleaning up its balance sheet, it had over $800 million of cash and equivalents as of year-end 2011.

3. Armstrong World Industries (AWI)

Company profile: Armstrong, with a market value of $2.6 billion, operates three business units: flooring, building and cabinetry, for residential and commercial use.

Investor takeaway: Its shares are up 20% this year and have a three-year, average annual return of 54%. Analysts give its shares four "buy" ratings, one "buy/hold," six "holds," and one "weak hold," according to a survey of analysts by S&P. For fiscal 2012, analysts estimate it will earn $2.89 per share, and that will grow by 19% to $3.44 per share in 2013.

2. Owens Corning (OC)

Company profile: Owens Corning, with a market value of $4 billion, is a glass fiber technology and composites provider for the commercial and residential building materials market. The company operates through two main segments: composites, which sells glass fiber materials, and building materials, which consists of insulation and roofing products.

Investor takeaway: Its shares are up 20% this year and have a three-year, average annual return of 24%. Analysts give its shares five "buy" ratings, six "buy/holds," and four "holds," according to a survey of analysts by S&P.

The company had a loss 38 cents per share in the first quarter on higher materials costs and layoffs, but it expects that the slowly improving U.S. housing market will help its building materials division, which saw revenue growth of 17% in the first quarter.

1. A.O. Smith (AOS)

Company profile: A.O. Smith, with a market value of $3.5 billion, manufactures electric motors and water heaters used in residential and commercial temperature-control products and pumps. Customers include York International and Sears.

Dividend Yield: 1.34%

Investor takeaway: Its shares are up 19% this year and have a three-year, average annual return of 34%. Analysts give its shares seven "buy" ratings, three "buy/holds," and two "holds," according to a survey of analysts by S&P.

S&P has it rated "strong buy" with a $55 price target, a 13% premium to the current price. It says the company is aggressively expanding its presence in developing markets," particularly China, while maintaining "relatively predictable cash flows generated by replacement water heater sales."

>>To see these stocks in action, visit the 8 Stocks Leading the Housing Recovery portfolio on Stockpickr.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.
3 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs