The video this transcript is based on appeared on December 18.
NEW YORK ( TheStreet) -- The continued growth in housing starts is a good sign for homebuilders in the new year, says Stocks Under $10 Portfolio Manager David Peltier.
I'm David Peltier, portfolio manager of TheStreet Stocks Under $10 newsletter. Now we have the release of housing starts data that came in Wednesday. You saw print, was the highest print in some five years show 23 percent growth. I think this is really gonna bring the homebuilding stocks back into play. A couple of ways I'm playing this group includes Standard Pacific, the ticker here is SPF. If you look at the stock it is actually lagging in 2013, only up about 11 or 12 percent year to date,currently trading just over eight dollars a share. That said, I think the company has a lot of pricing power. I also like the company's exposure to California which I think is a market that will remain hot in 2014, and I think the stock can move up into the double digits. The name I'm looking at is Builders FirstSource, ticker here is BLDR. The stock recently pulled back under seven, off about 15 percent from its recent highs. Now this is more in the building supplies area. The homebuilder said the company had a really strong quarter behind that company is expanding margins and I think that Builders FirstSource can gain market share, so for this stock I'm looking for a price of nine dollars sometime in 2014. For TheStreet, I'm portfolio manager David Peltier.
Written by David Peltier in New York.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV