Owens Corning (NYSE:OC) — This producer of glass-fiber reinforcements and building materials, including roofing materials, has predicted that roofing demand could reach the highest levels in 15 years.
Wall-board shipments rose 4% in Q3, the first year-to-year increase since 2006. And a 35% increase in wall-board prices will take effect this year, according to Fitch.
The results of an increase in home construction would directly benefit OC with a dramatic increase in earnings from the estimate of $2.30 in 2011.
This was on our list of Top Stocks to Buy for January, when we said, “Technically the stock has formed a ‘V’ bottom and a break through the resistance band at $30 to $32 should result in a quick run to $36-$38.”
That breakout occurred yesterday. Longer term expect much higher prices that should track an economic recovery.