10 Best Lumber Stocks To Buy Right Now

8. Simpson Manufacturing Co. Inc. (NYSE:SSD)

Number of Hedge Fund Holders: 22

Simpson Manufacturing Co. Inc. (NYSE:SSD) is a leading engineering and building materials company. It specializes in designing, engineering, and manufacturing wood construction products. Their product range includes connectors, truss plates, fastening systems, fasteners, and shear walls. Simpson Manufacturing Co. Inc. (NYSE:SSD) also manufactures concrete construction products.

In the third quarter of 2024, the company reported net sales of $587.2 million, showing a modest increase year-over-year despite ongoing pressure in the housing markets in both the US and Europe. Simpson Manufacturing Co. Inc. (NYSE:SSD) experienced a 500 basis point volume growth in North America, outpacing US housing starts over the past year. In light of market challenges, the company is shifting its focus to align costs with market conditions and improve overall profitability.

Additionally, Simpson Manufacturing Co. Inc. (NYSE:SSD) is actively investing in its facilities to enhance production capabilities. The expansion of their Columbus, Ohio facility is on track to be fully operational by early 2025, while a new fastener facility in Gallatin, Tennessee is expected to be completed by late 2025.

During the third quarter of 2024, Simpson Manufacturing Co. Inc. (NYSE:SSD) also acquired QuickFrames USA, a leader in engineered structural roof frames across the US, Canada, and Mexico. This acquisition will strengthen the company’s position in the market and expand its product offerings. With ongoing investments and strategic acquisitions, Simpson Manufacturing Co. Inc. (NYSE:SSD) is well-positioned for future growth. The company’s ability to adapt to market challenges while expanding its operational capacity makes it an attractive stock for investors looking at the lumber sector.