At first glance, the building products industry looks like one of
easiest investment sectors to analyze. It's usually seen as a highly
cyclical industry whose fortunes are tied to construction activity and
the economy in general. That's generally true, but investment in
construction projects isn't always going to align perfectly with
economic growth. Furthermore, the industry is subdivided between
residential and non-residential construction, private and public
investment, and new-build and remodeling activity. Growth rates can
fluctuate across these divisions, so it's essential to know what kind of
exposure a stock has.
For example, large companies with building products divisions, such as United Technologies (NYSE: UTX ) , Ingersoll-Rand (NYSE: IR ) , and Johnson Controls (NYSE: JCI ) , have broad-based exposure to construction activity. Meanwhile, smaller companies, such as Masco (NYSE: MAS ) (cabinets and home products), Lennox International (NYSE: LII ) (heating and ventilation and air conditioning, or HVAC), and Armstrong World Industries (NYSE: AWI ) (flooring and ceilings) will be more exposed to specific industry drivers. It's time to look more closely at this multilayered industry.
READ THE FULL ARTICLE LINKED HERE
For example, large companies with building products divisions, such as United Technologies (NYSE: UTX ) , Ingersoll-Rand (NYSE: IR ) , and Johnson Controls (NYSE: JCI ) , have broad-based exposure to construction activity. Meanwhile, smaller companies, such as Masco (NYSE: MAS ) (cabinets and home products), Lennox International (NYSE: LII ) (heating and ventilation and air conditioning, or HVAC), and Armstrong World Industries (NYSE: AWI ) (flooring and ceilings) will be more exposed to specific industry drivers. It's time to look more closely at this multilayered industry.
READ THE FULL ARTICLE LINKED HERE
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