As a professional copywriter, I have scoured the market to uncover some hidden gems in the home-building and manufacturing sectors. These four stocks not only doubled in value over the past year, but they also offer exceptional value compared to the S&P 500.
Screened for Success
To identify these impressive stocks, we screened through a range of mid-cap, large-cap, and megacap companies. Our criteria included stocks that have more than doubled in the last year, trade above $10 per share, and have a price/earnings ratio (P/E) of less than 19. For context, the S&P 500’s P/E ratio over the past 12 months was 22.3.
Builders FirstSource, headquartered in Irving, Texas, is a leading manufacturer of building materials. With a remarkable 113% surge in stock price over the past year, currently trading at around $137 per share, and boasting a P/E of 10.6, Builders FirstSource stands out from the crowd. Their recent second-quarter earnings exceeded expectations, gaining favor with analysts. In fact, 69% of analysts rate it as a buy, according to FactSet.
M/I Homes: Constructing Success
Columbus, Ohio-based M/I Homes is engaged in the construction and development of residential properties. It’s worth noting that their stock has experienced an astounding 114% growth in the last 12 months. Currently trading at roughly $94 per share with a low P/E of 5.5, M/I Homes presents an intriguing investment opportunity. In July, they surpassed analysts’ estimates with their impressive second-quarter earnings.
Dream Finders Homes and Modine Manufacturing
Two other notable stocks that passed our screening process are Dream Finders Homes (DFH) and Modine Manufacturing (MOD). While we won’t delve into their details at this time, we encourage investors to further explore these intriguing options.
In conclusion, the home-building and manufacturing sectors offer unique opportunities for investors looking for high-growth potential. Builders FirstSource and M/I Homes exemplify the potential for impressive returns in an otherwise overlooked sector.
Strong Performance in the Housing Industry
“We believe our industry will continue to benefit from strong fundamentals, including favorable demographic trends and an undersupply of housing,” stated CEO Robert Schottenstein in a recent earnings release. With this positive outlook, Dream Finders Homes, a Jacksonville-based company that specializes in designing, building, and selling homes in high-growth markets, has witnessed a remarkable growth of 142% over the last 12 months. Currently trading at around $27 per share, Dream Finders Homes boasts a P/E of 11.38.
During the second quarter, the company reported a notable 19% increase in home-building revenue compared to the same period last year. Additionally, the average sales price of closed homes rose by 9%. These figures indicate a strong performance and further solidify Dream Finders Homes’ position in the market.
Similarly, Modine Manufacturing, headquartered in Racine, Wisconsin, has experienced an impressive surge of 187% in share value over the past year. With a current trading price of approximately $46 per share and a P/E of 13.32, Modine Manufacturing is well-positioned for success.
In its first fiscal quarter, Modine Manufacturing surpassed earnings estimates and raised its outlook for fiscal 2024, further reinforcing its strong performance in the industry.
A Unique Combination of Companies
Although not commonly associated with glamour, this dynamic group of companies certainly presents an interesting investment opportunity.
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