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3 Building Products Stocks Highlighting the Zacks Rank #1 Strong Buy List This Week

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In a shortened week of trading several building products stocks are standing out among the Zacks Construction sector.  These companies are benefiting from strong business industries with it being notable that the Zacks Construction sector currently ranks second out of 16 Zacks sectors.

Landing spots on the Zacks Rank #1 (Strong Buy) list this week, let’s take a look at three of the top building products stocks at the moment.

Gibraltar Industries (ROCK - Free Report) )

The Zacks Building Products-Miscellaneous Industry is in the top 30% of over 250 Zacks industries and Gibraltar Industries continues to stand out as a provider of ventilation and expanded metal along with mail storage solutions and rain dispersion products.

Gibraltar's stock has soared +54% over the last year with the company’s bottom line expansion sparking its stellar performance. Rounding out its fiscal 2023, Gibraltar’s annual earnings are now expected to be up 21% and forecasted to expand another 12% in FY24 to $4.63 per share. Plus, earnings estimate revisions are modestly higher for both FY23 and FY24 over the last 60 days and Gibraltar’s stock still trades at a reasonable 17.1X forward earnings multiple.

Zacks Investment Research
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Granite Construction (GVA - Free Report) )

An expansive bottom line also makes Granite Construction’s stock very enticing right now with its Zacks Building Products-Heavy Construction Industry in the top 42% of all Zacks industries. Granite is benefiting as one of the nation’s largest infrastructure contractors and construction materials producers.

Annual earnings are projected to be up 35% as Granite rounds out FY23 to $3.12 per share versus $2.31 a share in 2022. More impressive, FY24 EPS is expected to expand another 37% to $4.29 a share. Intriguingly, Granite’s stock is up a very respectable +20% in the last year and trades at just 10.9X forward earnings.

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Lennox International (LII - Free Report) )

Lastly, the Zacks Building Products-Air Conditioner and Heading Industry is in the top 6% of all Zacks industries and Lennox International’s stock is certainly worthy of consideration. As a global leader in the heating, air conditioning, and refrigeration markets, Lennox's steady top and bottom line growth shouldn’t be ignored with its stock skyrocketing +70% over the last year.

Forecast of 26% EPS growth to round out FY23 and expectations of another 11% earnings growth in FY24 to a whopping $19.83 per share is extremely appealing. Total sales are projected to be up 4% in FY23 and are expected rise another 6% in FY24 to $5.20 billion. Pleasantly, at 21.7X forward earnings investors aren’t paying a premium for Lennox shares considering this is below its industry average of 26.7X and closer to the S&P 500’s 20X.

Zacks Investment Research
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Takeaway

The growth and expansion of these key construction sector players look likely to continue in 2024 giving investors another opportunity to get in while times are good. Their reasonable valuations also attest to this making now an ideal time to buy.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Lennox International, Inc. (LII) - free report >>

Gibraltar Industries, Inc. (ROCK) - free report >>

Granite Construction Incorporated (GVA) - free report >>

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