The Zacks Industry Rank Highlights: BlueLinx, Boise Cascade and JELD-WEN

Zacks Equity Research
·5-min read

For Immediate Release

Chicago, IL – October 28, 2020 - Stocks featured in this week's Zacks Industry Rank analysis include BlueLinx Holdings Inc. BXC, Boise Cascade Company BCC and JELD-WEN Holding, Inc. JELD.

3 HOT Wood Building Product Picks to Grab Now

The 14-company-strong Zacks Construction-Wood Building Products industry is hot.

For eight weeks in a row, its Zacks Industry Rank has toggled between #7 to #20 out of 254 industry groups we rank.

That’s in the Top 8% or better.

With the S&P 500 index showing a YTD return of +8.7%, this group of stocks is up +15.2%.

A 2X outperformance is nothing to sneeze at.

House-building and remodeling projects gained sales momentum — across the many waves of corporate remote working orders — encouraged by the coronavirus pandemic.

These types of home building or home improvement-related industries are all hot stocks. Covering analysts currently note Paints and Related Products (Top 2%), Home Builders (Top 4%), and Air Conditioning and Heating (Top 21%) industry earnings are doing well.

Covering analysts upgraded most included the companies' future earnings estimates. But, do you want the most beautiful element, in these current share price stories? The Construction-Wood Building Products group is still not an overvalued industry.

In fact, the shares are downright undervalued.

I see the industry Price to Earnings Growth (PEG) ratio stands at just 0.97. Meanwhile, the PEG ratio is 2.79 for the S&P 500 index as a whole.

According to both Zacks short and long-term scoring systems, the three best Construction-Wood Building Products stock picks are these—

(1) With a market cap of just $221M and a share price of $22, you probably haven’t heard of this building products-wood company.

Bluelinx Holdings is the largest distributor of building products in the United States.

Operating in all of the major metropolitan areas in the United States, BlueLinx distributes products to more than 11,700 customers through its network of warehouses and third-party operated warehouses.

Along with a Zacks #1 Rank (STRONG BUY) rating, I see a Zacks Value score of A, a Zacks Growth score of A, and a Zacks Momentum score of B.

The stock market beta is high at 2.2.

(2) With a market cap of just $1.5 and a share price near $39, here is an old-school lumber products stock to look at.

Boise Cascade Company operates as a wood products manufacturer and building materials distributor.

The company manufactures engineered wood products, plywood, lumber and particleboard and distributes wood products, such as decking, EWP, lumber, panel, particleboard, and MDF products. It has operations primarily in the United States and Canada.

Boise Cascade Company is headquartered in Boise, Idaho.

Along with a Zacks #2 Rank (BUY) rating, I see a Zacks Value score of A, a Zacks Growth score of A, and a Zacks Momentum score of B.

The stock market beta is high, again, at 2.2.

(3) With a market cap of $2.4B and a share price of $22, here is another steal.

JELD-WEN Holdings designs, produces and distributes interior and exterior doors, wood, vinyl and aluminum windows and related products for new construction and repair and remodeling of residential homes and non-residential buildings.

The company's brand portfolio includes JELD-WEN, Swedoor, DANA, Corinthian, Stegbar and Trend. It operates primarily in North America, Europe and Australia.

JELD-WEN Holding, Inc. is headquartered in Charlotte, North Carolina.

Along with a Zacks #2 Rank (BUY) rating, I see a Zacks Value score of A, a Zacks Growth score of A, and a Zacks Momentum score of A.

The stock market beta is very high, again, at 2.7.

Conclusion

An industry group of HOT stocks? I see that every time I consult Zacks heat map.

But I rarely see a HOT suite of short-term Zacks Ranked #1 and #2 stock picks, with the 3 very same share picks carrying a trifecta, of long-term A’s or B’s on Zacks Value, Growth, and Momentum.

Happy trading to all of you!

John Blank

Zacks Chief Equity Strategist

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BlueLinx Holdings Inc. (BXC) : Free Stock Analysis Report
 
Boise Cascade, L.L.C. (BCC) : Free Stock Analysis Report
 
JELDWEN Holding, Inc. (JELD) : Free Stock Analysis Report
 
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