Welcome to the new 2021 stock market! We are one quarter into the year, and it is apparent the high-flying speculative growth stocks of 2020 have gone out of favor. And although I’m still bullish on growth stocks, it’s now clear to me that construction stocks are the place to be.
What’s nice about the construction stocks is there is a migration of people moving from big cities (where an influx of ex-cons have taken over the streets) to safer suburbs. It’s such a strong push in population that more housing is required.
This month we will review some construction stocks, including the nations top homebuilder, DR Horton (DHI), which looks have good upside with a P/E of only 10. We’ll also go over some construction supply companies including paint company Sherwin-Williams (SHW), flooring supply retailer Floor & Décor (FND), parts store Fastenal (FAST), and one of the nations top insulation providers, Topbuild (BLD).