The construction industry is expected to grow over the next few years as new housing and office projects are being developed. As a result, the global building products market is also expected to grow at a steady pace through 2021. The building products segment covers manufacturers of non-structural materials used to construct buildings, houses, or other structures. Companies in this sector produce and sell various building materials such as wall coverings, insulation, flooring, windows and cabinets. There are many stocks an investor can choose from when looking at the best building products stocks to buy in 2022 and beyond. Here we are going to explore some of the best stores that investors should consider if they want to invest in the building products industry.
Gibraltar Industries (ROCK)
Gibraltar Industries Inc. is a leading supplier of architectural materials and manufactured products. The company is headquartered in Siloam Springs, Arkansas, USA. It offers a wide range of products, including wallcoverings, insulation, flooring, building products and vinyl window coverings. The Company’s products are used to construct commercial and residential buildings, including hotels, healthcare facilities, educational facilities and senior residences. Its products are also used for home repair and renovation. Gibraltar Industries recorded sales of $2.08 billion in the last 12 months. Its profits increased by 14.6% over the previous three years. The company’s current profit margin is 16.6%. EPS growth for the stock over the past year was 8.2%. The company currently has a dividend yield of 9.5%. Gibraltar Industries stock has a current market price of $47.55, with an expected price increase of 5% in one year. This is likely due to the growing demand for architectural materials produced by the company.
Masco Corporation is a manufacturer, marketer and distributor of a wide range of building materials, hardware and accessories. It has been in business for over 80 years. Masco is headquartered in Taylor, Michigan, and employs approximately 12,000 people worldwide. The company sells its products through a network of distributors. It comprises two segments, Distribution and Manufacturing and Others. The Distribution segment refers to the sale of business-to-business products. The Manufacturing and Others component refers to the company’s internal manufacturing activities. Masco has a current market capitalization of $5.87 billion and has seen a 12.2% rise in its share price over the past year. The company is also posting a dividend yield of 5.1%. Masco is an established brand that is expected to experience strong growth in the coming years. The company is financially strong and offers a wide range of products. Additionally, Masco will likely experience an increase in demand as construction activity is expected to increase in 2020.
FirstSource Builders (BLDR)
Builders FirstSource, Inc. is a distributor of a wide range of building materials. It has been in business for over 25 years. The company has a current market capitalization of $2.74 billion. BLDR has experienced annual revenue growth of 24.1% over the past three years. The company also has a profit margin of 10.4%. BLDR has EPS growth of 13.7% over the next three years. The company has a current dividend yield of 2.4%. The building materials industry is expected to grow during the 2020s owing to the increase in construction activity. The increase in demand for housing and office space will create a favorable environment for the building materials industry. This, in turn, will drive sales of BLDR’s products and lead to higher revenue. This should also boost BLDR’s share price.
Allegion is a manufacturer, marketer and distributor of a wide range of building products. He has been in the industry for over 100 years. Allegion’s products include door hardware, residential and commercial solutions, and residential and commercial door systems. The company operates globally with a current market capitalization of $13.99 billion. The company has recorded annual revenue growth of 7.7% over the past three years. Its profit margin is 12.2%. Additionally, the company’s EPS increased by 11.4% over the prior year. The construction industry is expected to grow during the 2020s due to the increase in housing and office developments. This will create a favorable environment for the building products industry. This should drive sales of Allegion’s products and lead to increased revenue. This should also push ALLE’s stock price higher.
The construction industry is expected to grow over the next few years due to the increase in housing and office development. This will create a favorable environment for the building products industry. This will likely boost sales of these top commodity stocks and boost their stock prices. Investors can take advantage of this growth by investing in one of these stocks.