10 Best Construction Materials Stocks To Buy Now

6. Boise Cascade Company (NYSE:BCC)

Number of Hedge Fund Holders: 29

Boise Cascade Company (NYSE:BCC) is a manufacturer and distributor of building materials. The company operates two divisions, Building Materials Distribution and Wood Products Manufacturing. The firm serves diversified customer segments, ranging from independent dealers to large chains and home centers.

Boise Cascade is a leader in the building products industry throughout North America by being among the largest producers of engineered wood products and plywood. An industry-leading scale, strong relationships and distribution rights with leading brands, deep customer relationships, and nationwide distribution capacities are some of the competitive strengths setting the firm apart. Additionally, Boise Cascade’s complementary divisions have been strategically aligned and have demonstrated market share growth together.

Boise Cascade Company (NYSE:BCC) is also seeing favorable demographics including a large cohort entering the homebuying age and a shortage of homes as a result of decades of underbuilding. Furthermore, locked-in low-rate mortgages and record-high home equity levels are driving strength in repair and remodeling. For the third quarter, BCC reported net income of $91.0 million on sales of $1.7 billion. While demand was moderate for the quarter, the financial performance was good with steady execution in both businesses. Home affordability and economic uncertainties constrained demand.

Therefore, Boise Cascade Company (NYSE:BCC) is a leading national provider of essential building materials and has a strong moat supported by a leading national footprint, supplier alignment, logistics expertise, and a trusted brand. As of Q3, the stock is held by 29 hedge funds.