We share the cautious optimism of America's homebuilders.
COVID-19 has taken a toll on containerboard producers, but we see opportunity.
However, the rebound in housing activity has inflated valuations.
Robust third-quarter housing data has stretched most valuations.
We strongly recommend clients avoid purchasing shares, or divest their current holdings of this narrow-moat firm.
The market expects too much of Sherwin-Williams.
New management is taking the company in the right direction, and Amcor has made a generous offer.
We expect housing starts to keep marching higher and think Lennar and Toll Brothers look undervalued.
We think the market’s overreaction provides an entry point for long-term investors.
Our bearish view on the mining and metals sector means the basic materials coverage universe trades at a market-cap-weighted 30% premium to our fair value estimates.
We expect an acceleration of housing demand and a resulting surge in lumber prices, which could create a buying opportunity for Canfor and West Fraser.
Falling unemployment and rising wages are poised to stimulate household formation among younger adults.
Stronger household formation by millennials is key.
We're optimistic about housing demand, and think investors should keep their eyes on undervalued wood product, home improvement, and homebuilding companies.
Lumber producers Canfor and West Fraser and homebuilder PulteGroup remain undervalued.
Canadian lumber producer Canfor should see its profitability grow alongside demand for houses in the U.S., says Morningstar’s Charles Gross.