The housing starts data released by the Census Bureau this morning was the best result in roughly five years, a 23% gain. This news should be a great thing for homebuilders, Peltier said.
His first pick is Standard Pacific (SPF), which currently trades just above $8 per share.
The stock is only up 12% in 2013, which lags the S&P 500 by nearly 13% year-to-date. Peltier thinks the company's pricing power and exposure to California could boost the share price into the double digits in 2014.Another stock with solid potential is Builders FirstSource (BLDR), which currently trades at just under $7. Peltier said this company just reported a strong earnings quarter and expanded margins had expanded. He concluded that if the building supply company can continue to take market share, it should hit $9 sometime in 2014. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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