Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Time To Stock Up On Stock Building Supply

In the relatively short time it has been a publicly-traded company, Stock Building Supply (STCK) has been a solid performer and a good way to play improving residential housing construction. Up about 30% from early August, Stock has been outperformed by Universal Forest Products (NASDAQ:UFPI), which has climbed about 40%, but has outperformed Headwaters (NYSE:HW) and Louisiana-Pacific (NYSE:LPX) by wide margins. With the company picking up more share of new projects and looking to improve its mix toward higher-margin products, better results and a higher stock price seem like reasonable assumptions today.

All About New Construction

Stock generates over 70% of its revenue from new residential construction, with most of that coming from single-family...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details