This building products manufacturer beat last quarter’s earnings estimates by two cents. The company’s analysts are forecasting growth next quarter of 34.3%, and 41.4% for this year. Our second recommendation today is profit-taking on a recent pick.
Quanex Building Products Corp. (NX)
From Martin’s Ultimate Portfolio
We are allocating 2% of our original $100K portfolio to buy shares in Quanex Building Products Corp. (NX, Rated B-) at a limit price of $20.27 or better.
Here’s why we like Quanex:
Reason #1: Dominant Market Presence. Around since 1927, Quanex is a leading player in the OEM (original equipment manufacturer) building products space. It boasts a wide array of window, door, and engineered products as well as a powerful collection of production facilities.
Reason #2: Solid Fundamentals. Drill down into the latest numbers from Quanex and you won’t be surprised to find outstanding sales, cash flow, and profit results. And all the company’s divisions are adding to the pie. The company’s longer term results are solid, too.
Reason #3: Excellent Outlook. On top of good performance results, the outlook is even better for Quanex: Sales, cash flow, and profits are all looking up in 2016. Plus, larger economic forces in the housing and window manufacturing arenas point to even more strength.
Reason #4: Attractive Chart. Quanex stock is poised to break out. It’s had trouble at the level before, but a new run looks like it will do the trick. The shares also have solid support.
Martin D. Weiss, Martin’s Ultimate Portfolio, published by Money and Markets, a Division of Weiss Research, Inc., www.moneyandmarkets.com/services/trading-services/martinsultimate-portfolio; Email: issues@e.moneyandmarkets.com, 800-291- 8545, July 8, 2016