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We’ll start with LSI Industries, with it noteworthy that its Zacks Building Products-Lighting Industry is in the top 1% of over 250 Zacks industries. LSI Industries is benefiting from its strong business environment as an image solutions company that supplies high-quality lighting fixtures for applications in the retail, specialty niche, and commercial markets.
With its stock trading at $15, LSI Industries' valuation supports its affordable price tag. LSI Industries stock trades at a 17.3X forward earnings multiple with EPS expected to be up 6% in its current fiscal 2025 and projected to soar another 34% in FY26 to $1.18 per share. More intriguing is that LSI Industries stock trades below the optimum level of less than 1X sales with its top line slated to increase 14% in FY25 and projected to rise another 7% in FY26 to $577.31 million.
In addition to its strong buy rating, LSI Industries has an overall “A” VGM Zacks Style Scores grade for the combination of Value, Growth, and Momentum.
Among homebuilders, MI Homes stands out as one the leading builders of single-family homes in the United States. Notably, the Zacks Building Products-Home Builders Industry is in the top 6% of all Zacks industries.
MI Homes’ earnings potential is very lucrative with its robust bottom line expected to expand 21% this year to $19.58 per share versus EPS of $16.21 in 2023. Even better, MI Homes trades at just 8.4X forward earnings with FY25 EPS projected to rise another 7%.
Investors may also be drawn to MI Homes’ balance sheet as its cash and equivalents have skyrocketed from $6 million in 2019 to $837 million at the end of Q2 2024. Furthermore, MI Homes has $4.34 billion in total assets which is nicely above its $1.59 billion in total liabilities.
Also belonging to the top-rated Zacks Building Products-Homebuilders Industry is Century Communities. Century Communities engages in the acquisition of land and construction for single-family detached and attached residential home projects.
Century Communities’ has a solid balance sheet as well with high double-digit top and bottom line growth in the forecast for FY24. Trading at 9.5X forward earnings, Century Communities FY25 EPS is expected to increase another 15% to $12.24 per share.
Image Source: Zacks Investment Research
Bottom Line
In correlation with their strong business industries, earnings estimate revisions have gone up for these highly-ranked building products stocks. This makes now an ideal time to buy considering their favorable growth trajectories and reasonable valuations.
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Time to Buy These Highly Ranked Building Products Stocks
The construction sector may be of interest to investors with the Fed likely to implement a rate cut of 25 basis points in September.
Of course, lower interest/mortgage rates benefit homebuilders among other building product companies as demand is likely to rise for their services.
Keeping this in mind, here are three highly-ranked building products stocks that were added to the Zacks Rank #1 (Strong Buy) list this week.
LSI Industries (LYTS - Free Report)
We’ll start with LSI Industries, with it noteworthy that its Zacks Building Products-Lighting Industry is in the top 1% of over 250 Zacks industries. LSI Industries is benefiting from its strong business environment as an image solutions company that supplies high-quality lighting fixtures for applications in the retail, specialty niche, and commercial markets.
With its stock trading at $15, LSI Industries' valuation supports its affordable price tag. LSI Industries stock trades at a 17.3X forward earnings multiple with EPS expected to be up 6% in its current fiscal 2025 and projected to soar another 34% in FY26 to $1.18 per share. More intriguing is that LSI Industries stock trades below the optimum level of less than 1X sales with its top line slated to increase 14% in FY25 and projected to rise another 7% in FY26 to $577.31 million.
In addition to its strong buy rating, LSI Industries has an overall “A” VGM Zacks Style Scores grade for the combination of Value, Growth, and Momentum.
Image Source: Zacks Investment Research
MI Homes (MHO - Free Report)
Among homebuilders, MI Homes stands out as one the leading builders of single-family homes in the United States. Notably, the Zacks Building Products-Home Builders Industry is in the top 6% of all Zacks industries.
MI Homes’ earnings potential is very lucrative with its robust bottom line expected to expand 21% this year to $19.58 per share versus EPS of $16.21 in 2023. Even better, MI Homes trades at just 8.4X forward earnings with FY25 EPS projected to rise another 7%.
Investors may also be drawn to MI Homes’ balance sheet as its cash and equivalents have skyrocketed from $6 million in 2019 to $837 million at the end of Q2 2024. Furthermore, MI Homes has $4.34 billion in total assets which is nicely above its $1.59 billion in total liabilities.
Image Source: Zacks Investment Research
Century Communities (CCS - Free Report)
Also belonging to the top-rated Zacks Building Products-Homebuilders Industry is Century Communities. Century Communities engages in the acquisition of land and construction for single-family detached and attached residential home projects.
Century Communities’ has a solid balance sheet as well with high double-digit top and bottom line growth in the forecast for FY24. Trading at 9.5X forward earnings, Century Communities FY25 EPS is expected to increase another 15% to $12.24 per share.
Image Source: Zacks Investment Research
Bottom Line
In correlation with their strong business industries, earnings estimate revisions have gone up for these highly-ranked building products stocks. This makes now an ideal time to buy considering their favorable growth trajectories and reasonable valuations.