Top 5 Construction Stocks To Invest In Right Now

Alan Diaz/AP U.S. homebuilders are feeling more confident in their sales prospects headed into next year, a sign that home construction and sales of newly built homes may pick up after stalling this summer. The National Association of Home Builders/Wells Fargo builder sentiment index released Monday rose this month to 55, up two points from a revised reading of 53 in July. The latest reading is the third monthly increase in a row and the highest since January, when it was 56. Readings above 50 indicate more builders view sales conditions as good, rather than poor. Builders' view of current sales conditions for single-family homes, their outlook for sales over the next six months and traffic by prospective buyers each increased since July. The brighter outlook bodes is a positive sign for the new-home market after a lackluster summer. Sales of new homes are running behind last year's pace. They slid 8.1 percent in June to a seasonally adjusted annual rate of 406,000. A mix of rising home prices, higher mortgage rates and meager wage growth has made it more difficult for would-be homebuyers to purchase a newly built home, particularly first-time buyers. At the same time, the U.S. economy has been adding jobs at a solid clip, with gains topping 200,000 jobs every month in the six months through July. And the pickup in home values has spurred homeowners to trade up to a nicer home. These so-called move-up buyers are generally in a better financial position to buy than first-time buyers and have helped drive sales for some of the nation's biggest homebuilders. In the latest NAHB index, which was based on responses from 366 builders, builder confidence improved nationally and on a regional basis, with readings for the Midwest, West, Northeast and South all posting gains from last month. The index gauging current sales conditions for single-family homes rose two points to 58, while builders' outlook for sales over the next six months also rose two points, climbing to 65. A measure of traffic by prospective buyers increased three points to 42. Housing, while still a long way from the boom of several years ago, has been recovering over the past two years. Though new homes represent only a fraction of the housing market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to NAHB data.

Hot Asian Stocks To Buy For 2015: American Woodmark Corp (AMWD)

American Woodmark Corporation, incorporated on April 21, 1980, manufactures and distributes kitchen cabinets and vanities for the remodeling and new home construction markets. The Company offers framed stock cabinets in approximately 550 different cabinet lines, ranging in price from relatively inexpensive to medium-priced styles. Styles vary by design and color from natural wood finishes to low-pressure laminate surfaces. The product offering of stock cabinets includes 86 door designs in 18 colors. Stock cabinets consist of a common box with standard interior components and a maple, oak, cherry, or hickory front frame, door and/or drawer front. The Company�� product is primarily sold under the brand names of American Woodmark, Timberlake, Shenandoah Cabinetry, Potomac, and Waypoint Living Spaces.

The Company�� product is sold on a national basis across the United States to the remodeling and new home construction markets. The Company services these markets through three primary channels, which include home centers, builders, and independent dealers and distributors. The Company provides complete installation services to its direct builder customers through its network of nine service centers that are strategically located throughout the United States. The Company distributes its products to each market channel directly from four assembly plants through a third party logistics network. The primary raw materials used include hard maple, oak, cherry, soft maple, and hickory lumber and plywood.

Advisors' Opinion:

• [By John Udovich]

  After the bedroom, the kitchen is probably the place where we spend the most time awake in our homes with small cap kitchen stocks Caesarstone Sdot-Yam Ltd (NASDAQ: CSTE) and American Woodmark Corporation (NASDAQ: AMWD) along with diversified midcap Fortune Brands Home & Security Inc (NYSE: FBHS) all putting in a good performance. After all, any sort of housing recovery with more new homes being sold will�help kitchen stocks and so will increased sales of older or foreclosed homes that need to have their kitchens remodeled. But which is the better kitchen stock for investors? Here is�closer look at all three:

Top 5 Construction Stocks To Invest In Right Now: KBR Inc. (KBR)

KBR, Inc. operates as an engineering, construction, and services company supporting the energy, hydrocarbon, government services, minerals, civil infrastructure, power, and industrial sectors worldwide. Its Downstream business unit provides front end engineering design; detailed engineering; engineering, procurement, and construction (EPC); EPC management; and program management services to petrochemical, refining, coal gasification, and syngas markets. The company?s Government and Infrastructure business unit provides program and project management, contingency logistics, operations and maintenance, construction management, engineering, and other services to military and civilian branches of governments and private clients. Its Services business unit delivers engineering, construction, construction management, fabrication, maintenance, and turnaround services. It also offers maintenance, construction, and drilling support services for offshore oil and gas producing facili ties using semisubmersible vessels. This segment serves oil, gas, petrochemicals, and hydrocarbon processing industries, as well as power, alternate energy, pulp and paper, industrial and manufacturing, and pharmaceutical industries. The company?s Technology business unit offers various process technologies, including value-added technologies in the coal monetization, petrochemical, refining, and syngas markets. Its Upstream business unit constructs liquefied natural gas, gas-to-liquids, onshore oil and gas production facilities, offshore oil and gas production facilities, and onshore and offshore pipelines. The company?s Ventures business unit invests in and manages projects, where the company provides engineering, construction, construction management or operations, and maintenance services. KBR, Inc. was founded in 1901 and is based in Houston, Texas.

Advisors' Opinion:

• [By Jonas Elmerraji]

  Mid-cap construction and engineering firm KBR Inc. (KBR) is another name with a mountain of cash sitting on the books. The firm currently sports $895 million in net cash on its balance sheet, enough to cover 29% of its current price per share. That effectively reduces the risks of this contractor's share price by a third.

  KBR is an engineering and construction services contractor that primarily serves the U.S. government and the energy sector. Until 2006, KBR was a unit of Halliburton (HAL), a connection that gives it deep-rooted connections with the oil and gas business, where the firm has transitioned much of its sales efforts. Prior to that, KBR's bread and butter was the sole contractor of food service, utilities, laundry, and other services for U.S. troops in Iraq and Afghanistan – but that changed after a series of missteps from KBR that prompted the government to add other contractors to the current iteration of the LOGCAP contract.

  Bigger exposure to the private sector is a good thing -– restructuring efforts and a new management team should help steer the ship around. It's that huge cash position that helps to make KBR worth a closer look in 2014. While it's more speculative than the other names on our cash-rich list, it's also the one with the most upside potential on near-term catalysts.

Top 5 Construction Stocks To Invest In Right Now: Alexandria Real Estate Equities Inc. (ARE)

Alexandria Real Estate Equities, Inc., a real estate investment trust (REIT), engages in the ownership, operation, management, development, acquisition, and redevelopment of properties for the life sciences industry. Its properties consist of buildings containing scientific research and development laboratories, and other improvements. The company offers its properties for lease primarily to universities and independent not-for-profit institutions; and pharmaceutical, biotechnology, medical device, life science product, service, biodefense, and translational research entities, as well as governmental agencies. As of December 31, 2006, it had 159 properties, including 156 properties located in 9 states in the United States and 3 properties located in Canada. As a REIT, the company is not subject to federal income tax to the extent that it distributes 100% of its taxable income to its stockholders. The company was founded in 1993 and is based in Pasadena, California.

Advisors' Opinion:

• [By Shauna O'Brien]

  Real estate investment trust Alexandria Real Estate Equities Inc (ARE) announced on Tuesday that its board has approved a 4.6% increase to its quarterly dividend.

  The firm has raised its dividend from 65 cents to 68 cents per share, or $2.72 annually. The dividend will be paid on October 15 to shareholders of record on September 30. The stock will go ex-dividend on September 26.

  Alexandria Real Estate Equities shares were mostly flat during pre-market trading Tuesday. The stock is down 9% YTD.

Top 5 Construction Stocks To Invest In Right Now: Larsen & Toubro Ltd (LT)

Larsen & Toubro Limited is a technology, engineering, construction and manufacturing company. It operates in three segments Engineering & Construction Segment, Electrical & Electronics segment, Machinery & Industrial Products, and others. Engineering & construction Segment comprises execution of engineering and construction projects in India. Electrical & electronics Segment comprises manufacture and sale of low and medium voltage Switchgear components, custom-built switchboards, custom built low and medium voltage switchboards, and electronic energy meters/protection (relays) systems. Machinery & industrial Products Segment comprises manufacture and sale of industrial machinery and equipment, manufacture and marketing of industrial valves, construction equipment and welding/industrial products. Others include property development and integrated engineering services. Effective March 28, 2013, the Company acquired Audco India Ltd. Advisors' Opinion:

• [By Ian Sayson]

  India�� S&P BSE Sensex added 0.1 percent as Larsen & Toubro Ltd. (LT) drove a measure of capital goods producers to its first advance in three days. State Bank of India sank after Moody�� Investors Service cut its credit rating. The rupee fell for a third day, the longest losing streak in almost a month.

• [By Anuchit Nguyen]

  India�� S&P BSE Sensex rose, holding at a three-year high, amid better-than-estimated corporate earnings. Engineering company Larsen & Toubro Ltd. (LT) rallied to a three-month high and Asian Paints Ltd. (APNT) surged about 6 percent after reporting profit that beat forecasts.