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By Achuva Shats

November 15, 2019

This story covers 8 Construction isntruments to have in your portfolio in December 2019. Specifically, I will break down the following equities: KBR, Fortune Brands Home Security, Lennar Corporation, KB Home, Beazer Homes USA, Ameresco, PulteGroup, and Brookfield Business Partners L
The Top 8 Construction stocks to own in December 2019

This list of potential positions covers USA Equities from Construction industry as classified by Fama & French. Fama and French focuses on testing asset pricing under different economic assumptions in USA. Please note, we provide buy hold or sell recommendation only in the context of selected investment horizon assuming investor has average attitude towards taking risk. Please also consider using Portfolio Positions Ratings and Equity Ratings tools to further calibrate your research.


KBR (KBR)

The company has Net Profit Margin of 0.03 % which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 7.13 % which entails that for every 100 dollars of revenue it generated 0.07 of operating income. The firm currently falls under 'Mid-Cap' category with total capitalization of 3.6 B. KBR secures last-minute Real Value of $31.43 per share. The latest price of the entity is $30.07. At this time the entity appears to be undervalued. This module forecasts value of KBR from evaluating the entity fundamentals such as Profit Margin of 0.025105 , Current Valuation of 4.55 B and Return On Asset of 0.0003  as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we recommend to purchase undervalued stocks and to get rid of overvalued stocks since in the future entities prices and their ongoing real values will merge together.

Fortune Brands Home Security (FBHS)

The company has return on total asset (ROA) of 7.42 % which means that it generated profit of $7.42 on every $100 spent on asset. This is normal as compared to the sector avarege. Similarly, it shows return on stockholders equity (ROE) of 18.06 % meaning that it created $18.06 on every $100 dollars invested by stockholders. The firm currently falls under 'Mid-Cap' category with current market capitalization of 8.8 B.
Total Debt
Fortune Brands Home shows prevailing Real Value of $68.55 per share. The current price of the firm is $64.67. At this time the firm appears to be undervalued. This module computes value of Fortune Brands Home from reviewing the firm fundamentals such as Shares Outstanding of 139.15 M, Profit Margin of 7.23  and Current Valuation of 10.99 B as well as analyzing its technical indicators and Probability Of Bankruptcy. In general, we advise to go long with undervalued instruments and to sell out overvalued instruments since at some point assets prices and their ongoing real values will submerge.

Lennar Corporation (LEN)

About 98.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.21. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. The entity has Price/Earnings To Growth (PEG) ratio of 1.1. The entity recorded earning per share (EPS) of 6.06. The firm last dividend was issued on 2019-10-17. The entity had 2:1 split on 2017-11-09. The company currently falls under 'Large-Cap' category with total capitalization of 18.13 B. Lennar secures last-minute Real Value of $60.6 per share. The latest price of the firm is $59.18. At this time the firm appears to be fairly valued. This module forecasts value of Lennar from analyzing the firm fundamentals such as Return On Equity of (0.17) , Current Valuation of 27.92 B and Profit Margin of (0.13)  as well as examining its technical indicators and Probability Of Bankruptcy. In general, we recommend to purchase undervalued stocks and to get rid of overvalued stocks since at some point entities prices and their ongoing real values will merge together.

KB Home (KBH)

About 92.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.27. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. The entity has Price/Earnings To Growth (PEG) ratio of 1.62. The entity last dividend was issued on 2019-11-13. The firm had 2:1 split on 2005-04-29. This firm currently falls under 'Mid-Cap' category with total capitalization of 2.79 B.
Total Debt
KB Home owns latest Real Value of $38.01 per share. The recent price of the entity is $34.12. At this time the entity appears to be undervalued. This module forecasts value of KB Home from analyzing the entity fundamentals such as Profit Margin of (0.20) , Shares Owned by Insiders of 11.69  and Return On Asset of (0.13)  as well as examining its technical indicators and Probability Of Bankruptcy. In general, we recommend to invest in undervalued equities and to get rid of overvalued equities since sooner or later instruments prices and their ongoing real values will come together.

Beazer Homes USA (BZH)

About 93.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 0.84. Some equities with similar Price to Book (P/B) outperform the market in the long run. The entity has Price/Earnings To Growth (PEG) ratio of 2.06. The entity recorded loss per share of 2.6. The firm last dividend was issued on 2007-09-06. The entity had 1:5 split on 2012-10-12. The company currently falls under 'Small-Cap' category with total capitalization of 474.02 M. Beazer Homes USA shows prevailing Real Value of $17.36 per share. The current price of the firm is $15.27. At this time the firm appears to be undervalued. This module approximates value of Beazer Homes USA from analyzing the firm fundamentals such as Return On Equity of (13.43)  and Profit Margin of (3.81)  as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor to go long with undervalued instruments and to trade away overvalued instruments since at some point assets prices and their ongoing real values will blend.

Ameresco (AMRC)

About 35.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 1.83. Some equities with similar Price to Book (P/B) outperform the market in the long run. The entity has Price/Earnings To Growth (PEG) ratio of 0.86. The entity had not issued any dividends in recent years. The firm had 2:1 split on 2010-07-20. This firm currently falls under 'Small-Cap' category with current market capitalization of 715.22 M.
Total Debt
Ameresco shows prevailing Real Value of $18.25 per share. The current price of the firm is $16.25. At this time the firm appears to be undervalued. This module approximates value of Ameresco from analyzing the firm fundamentals such as Profit Margin of 0.0004  and Return On Equity of 0.0012  as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor to go long with undervalued instruments and to trade away overvalued instruments since at some point assets prices and their ongoing real values will blend.

PulteGroup (PHM)

About 92.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.94. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. The entity has Price/Earnings To Growth (PEG) ratio of 2.19. The entity last dividend was issued on 2019-09-17. The firm had 2:1 split on 2005-09-02. This firm currently falls under 'Mid-Cap' category with total capitalization of 9.94 B. PulteGroup holds recent Real Value of $41.89 per share. The prevailing price of the company is $40.05. At this time the company appears to be undervalued. This module determines value of PulteGroup from analyzing the company fundamentals such as Shares Outstanding of 274.22 M, Operating Margin of 13.75  and Return On Equity of (0.26)  as well as examining its technical indicators and Probability Of Bankruptcy. In general, we support investing in undervalued entities and to dispose of overvalued entities since at some point stocks prices and their ongoing real values will merge together. PulteGroup competes with Beazer Homes, Century Communities, D R, Hovnanian Enterprises, KB Home, Lennar, M D, MI Homes, and Meritage Homes. PulteGroup, Inc., through its subsidiaries, primarily engages in the homebuilding business in the United States. PulteGroup, Inc. was founded in 1950 and is headquartered in Atlanta, Georgia. PulteGroup operates under Residential Construction classification in USA and is traded on BATS Exchange. It employs 5086 people.

Brookfield Business Partners L (BBU)

The company has Net Profit Margin of 0.05 % which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 4.71 % which entails that for every 100 dollars of revenue it generated 0.05 of operating income. The firm currently falls under 'Mid-Cap' category with total capitalization of 3.01 B.
Total Debt
Brookfield Business shows prevailing Real Value of $47.0 per share. The current price of the firm is $41.69. At this time the firm appears to be undervalued. This module approximates value of Brookfield Business from analyzing the firm fundamentals such as Profit Margin of 0.05 , Return On Equity of 0.0016  and Current Valuation of 35.99 B as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor to go long with undervalued instruments and to trade away overvalued instruments since at some point assets prices and their ongoing real values will blend.

Current 8 Construction Recommendations

Competition Technical Indicators

Mean
Deviation
Jensen
Alpha
Sortino
Ratio
Treynor
Ratio
Semi
Deviation
Information
Ratio
Expected
Shortfall
Potential
Upside
Value
At Risk
Maximum
Drawdown
 10.77  0.87  0.05  0.28  13.74  0.06 (15.34)  33.49 (25.00)  86.59 
 6.40 (1.35)  0.00 (7.19)  0.00 (0.15)  0.00  15.15 (15.08)  49.32 
 0.90  0.24  0.25  0.37  0.56  0.18 (1.18)  2.34 (1.46)  6.66 
 0.81 (0.13)  0.00 (1.24)  0.00 (0.17)  0.00  1.32 (2.10)  6.82 
 2.73 (0.59)  0.00 (0.42)  0.00 (0.16)  0.00  6.99 (6.57)  18.02 
 1,239  627.20  0.00  6.67  0.00  0.16  0.00  0.58 (8.25)  26,052 
 0.05 (0.01) (0.27) (0.25)  0.04 (0.59) (0.18)  0.19 (0.19)  0.95 
 7.64 (0.16)  0.00 (0.04)  0.00 (0.0094)  0.00  22.14 (21.04)  73.92 
 0.17 (0.01) (0.07) (0.02)  0.42 (0.13) (0.53)  0.29 (0.28)  3.61 
 7.41  1.80  0.14 (0.42)  7.14  0.11 (12.01)  35.33 (13.76)  86.98 

About Contributor

Achuva Shats
   Achuva Shats is a Member of Macroaxs Editorial Board. Achuva writes about retail product and service companies from the prospective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce View Profile
This story should be regarded as informational only and should not be considered as solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Macroaxis. Please refer to our Terms of Use for any information regarding our disclosure principles.

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