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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Masco and USG Have Led 11 Construction Stocks Since September

NEW YORK (TheStreet) -- The PHLX Housing Sector Index (HGX) has been my barometer for homebuilders and for stocks in the construction and industrial products sectors that provide products, services and materials for the housing market.

The housing index hit its 2013 low in mid-August. On Sept. 4, I wrote "Better Than Expected Construction Spending Helps Related Stocks."

Since then, the housing index has rebounded. Masco (MAS - Get Report), a manufacturer of home improvement and building products, has gained 21% since Sept. 3. That number is just shy of the 22% gain for USG (USG - Get Report), which provides building materials primarily for remodeling. Of the 11 construction-related stocks I have been tracking, only two are lower than their Sept. 3 closes.

The December reading of the National Association of Home Builders Housing Market Index showed a rise to 58 in a confidence trend above the neutral 50 reading. We also recently learned that single-family housing starts rose to an annual rate of 727,000 units in November.

Although these are positive trends, the normal run rate for single-family starts is 1.1 to 1.2 million units, and with higher home prices, mortgage rates on the rise, higher home insurance rates and increasing property taxes, homes have become less affordable on Main Street where family incomes are sliding.

Last week's release of the S&P/Case-Shiller Home Price Indices showed that the 20-City Composite gained 13.6% year-over-year in October with a 0.2% rise from September. From the June/July 2006 peak this index is down 20%, and it is up 23.7% from its March 2012 low in what I consider a reinflating of the housing bubble.

Since Sept. 3, five of the 11 stocks in today's buy-and-trade coverage were downgraded to sell or strong sell, while the remainder maintained hold ratings, according to

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
MAS $26.70 0.95%
USG $26.70 1.10%
AAPL $124.43 -1.54%
FB $82.22 -1.18%
GOOG $548.00 -0.73%


DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

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