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4 Stocks to Buy While the Construction Sector Rallies Higher

An improved sector rating makes these stocks attractive

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Headquarted in Stamford, CT, United Rentals, Inc. (NYSE:URI) is one of North America’s largest equipment rental companies with branches in the majority of the states and several Canadian provinces. The company has a Zacks Rank #2 and a VGM score of ‘A’. The Zacks Consensus Estimate for current year earnings rose 2.3% in the last 60 days.

The company outperformed the broader industry on a year-to-date basis (+19.2% vs +4.5%). Also, shares of United Rentals returned over 103% in the last one year, much higher than the Zacks categorized Building Products – Miscellaneous industry’s gain of 20.8%.

Further, the company’s Return on Equity or ROE in the trailing 12 months was an impressive 44.2%, better than the industry’s 10.6%. This indicates that the company reinvests more efficiently in comparison with its peers.

Louisiana-Pacific Corporation (NYSE:LPX) manufactures and sells building products, primarily for use in new home construction. The company has a Zacks Rank #1 and a VGM score of ‘A’. The Zacks Consensus Estimate for current year earnings rose 4% in the last 60 days. Louisiana-Pacific is likely to yield a return of 74.2% this year, more than the industry’s projected gain of 19.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company outperformed the Zacks categorized Building Products – Wood industry on a year-to-date basis (+37.7% vs +13.6%). The company’s ROE in the trailing 12 months was an impressive 10.6%, better than the industry’s 8.8%.

MasTec, Inc. (NYSE:MTZ) is one of the largest providers of construction services to the telecommunications industry in the U.S. The company has a Zacks Rank #2 and a VGM score of ‘A’. In the last 60 days, the Zacks Consensus Estimate for current year’s earnings has moved up 14.1%. MASTEC is likely to yield a return of 26.8% this year, more than the industry’s projected gain of 15.8%.

The company outperformed the Building Products-Heavy Construction industry on a year-to-date basis (+7.8% vs +1.4%). The company’s ROE in the trailing 12 months was an impressive 13.3%, better than the industry’s 7.7%.

Engaged in the construction, sale and related financing of residential housing, M.D.C. Holdings, Inc. (NYSE:MDC) carries Zacks Rank #2 and a VGM score of ‘A’. In the last 60 days, the Zacks Consensus Estimate for current year’s earnings has moved up 0.8%. M.D.C. Holdings has projected earnings per share (EPS) rate of 26.8% in 2017, higher than the industry average of 16.1%.

Shares of M.D.C. Holdings returned over 21% in the last one year, much higher than the industry’s gain of 13.3%.

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United Rentals, Inc. (URI): Free Stock Analysis Report

Louisiana-Pacific Corporation (LPX): Free Stock Analysis Report

MasTec, Inc. (MTZ): Free Stock Analysis Report

M.D.C. Holdings, Inc. (MDC): Free Stock Analysis Report

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