A recently conducted analysis has identified four home-building and manufacturing stocks that have not only doubled in value over the past year but also trade at a lower price compared to the S&P 500.
The analysis screened a variety of mid-cap, large-cap, and megacap stocks based on the criteria of doubling in value within the last year, trading above $10 per share, and having a price/earnings ratio below 19. For comparison, the S&P 500’s P/E ratio over the past 12 months is 22.3, according to FactSet.
The resulting list of stocks includes the following:
Builders FirstSource (BLDR)
Builders FirstSource, a Texas-based company specializing in manufacturing building materials, has experienced a significant surge of 113% in value over the past year. Currently trading at approximately $137 per share, it boasts a P/E ratio of 10.6.
The company recently reported excellent second-quarter earnings, surpassing expectations. A majority of analysts are optimistic about Builders FirstSource, with 69% rating it as a Buy and 31% as a Sell, according to FactSet. It was also recognized in a Q&A session with GoodHaven’s Larry Pitkowsky in April.
M/I Homes
Headquartered in Columbus, Ohio, M/I Homes is engaged in the construction and development of residential properties. This stock has seen an impressive growth of 114% in the past year and is currently trading around $94 per share. With a P/E ratio of 5.5, M/I Homes posted second-quarter earnings in July that comfortably surpassed analysts’ estimates.
Dream Finders Homes
Dream Finders Homes is a Jacksonville, Florida-based company that specializes in designing, building, and selling homes in high-growth markets. The company has experienced significant growth, with shares increasing by 142% over the last 12 months and currently trading at around $27 a share. The price-to-earnings ratio (P/E) stands at 11.38.
In recent news, Dream Finders Homes reported a 19% rise in second-quarter home-building revenue compared to the same period last year. Additionally, the average sales price of homes closed increased by 9% over that timeframe.
Modine Manufacturing
Modine Manufacturing, headquartered in Racine, Wisconsin, is a thermal management products and solutions company. Over the last 12 months, Modine Manufacturing’s shares have surged by an impressive 187%, currently trading at approximately $46 a share. The P/E ratio for the company stands at 13.32.
Recently, Modine Manufacturing surpassed earnings estimates for its first fiscal quarter and raised its outlook for fiscal 2024.
The Takeaway
Among the featured stocks, three are small players in the housing industry, while the fourth operates in the auto sector. Builders First Source, the largest company in this group, boasts a market capitalization of $16.48 billion. In contrast, the remaining three companies have market capitalizations under $3 billion. For comparison, Carrier Global (CARR), a major holding in the SDPR S&P Homebuilders ETF (XHB) and a manufacturer of heating, ventilation, and air conditioning products, has a market cap of about $45 billion.
While these stocks may not be considered glamorous, they certainly present interesting investment opportunities.